Correlation Between Glaukos Corp and Masimo
Can any of the company-specific risk be diversified away by investing in both Glaukos Corp and Masimo at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Glaukos Corp and Masimo into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Glaukos Corp and Masimo, you can compare the effects of market volatilities on Glaukos Corp and Masimo and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Glaukos Corp with a short position of Masimo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Glaukos Corp and Masimo.
Diversification Opportunities for Glaukos Corp and Masimo
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Glaukos and Masimo is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Glaukos Corp and Masimo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Masimo and Glaukos Corp is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Glaukos Corp are associated (or correlated) with Masimo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Masimo has no effect on the direction of Glaukos Corp i.e., Glaukos Corp and Masimo go up and down completely randomly.
Pair Corralation between Glaukos Corp and Masimo
Given the investment horizon of 90 days Glaukos Corp is expected to generate 3.3 times less return on investment than Masimo. In addition to that, Glaukos Corp is 1.16 times more volatile than Masimo. It trades about 0.11 of its total potential returns per unit of risk. Masimo is currently generating about 0.44 per unit of volatility. If you would invest 14,071 in Masimo on August 28, 2024 and sell it today you would earn a total of 3,699 from holding Masimo or generate 26.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Glaukos Corp vs. Masimo
Performance |
| Timeline |
| Glaukos Corp |
| Masimo |
Glaukos Corp and Masimo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Glaukos Corp and Masimo
The main advantage of trading using opposite Glaukos Corp and Masimo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Glaukos Corp position performs unexpectedly, Masimo can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Masimo will offset losses from the drop in Masimo's long position.| Glaukos Corp vs. Orthopediatrics Corp | Glaukos Corp vs. CONMED | Glaukos Corp vs. LivaNova PLC | Glaukos Corp vs. Paragon 28 |
| Masimo vs. Heartbeam | Masimo vs. EUDA Health Holdings | Masimo vs. Nutex Health | Masimo vs. Healthcare Triangle |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Bonds Directory module to find actively traded corporate debentures issued by US companies.
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