Correlation Between Glaukos Corp and Nutex Health
Can any of the company-specific risk be diversified away by investing in both Glaukos Corp and Nutex Health 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 Nutex Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Glaukos Corp and Nutex Health, you can compare the effects of market volatilities on Glaukos Corp and Nutex Health 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 Nutex Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Glaukos Corp and Nutex Health.
Diversification Opportunities for Glaukos Corp and Nutex Health
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Glaukos and Nutex is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Glaukos Corp and Nutex Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nutex Health 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 Nutex Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nutex Health has no effect on the direction of Glaukos Corp i.e., Glaukos Corp and Nutex Health go up and down completely randomly.
Pair Corralation between Glaukos Corp and Nutex Health
Given the investment horizon of 90 days Glaukos Corp is expected to generate 13.97 times less return on investment than Nutex Health. But when comparing it to its historical volatility, Glaukos Corp is 3.11 times less risky than Nutex Health. It trades about 0.06 of its potential returns per unit of risk. Nutex Health is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 2,354 in Nutex Health on August 31, 2024 and sell it today you would earn a total of 1,366 from holding Nutex Health or generate 58.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Glaukos Corp vs. Nutex Health
Performance |
| Timeline |
| Glaukos Corp |
| Nutex Health |
Glaukos Corp and Nutex Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Glaukos Corp and Nutex Health
The main advantage of trading using opposite Glaukos Corp and Nutex Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Glaukos Corp position performs unexpectedly, Nutex Health 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 Nutex Health will offset losses from the drop in Nutex Health's long position.| Glaukos Corp vs. Orthopediatrics Corp | Glaukos Corp vs. CONMED | Glaukos Corp vs. LivaNova PLC | Glaukos Corp vs. Paragon 28 |
| Nutex Health vs. Evolent Health | Nutex Health vs. Simulations Plus | Nutex Health vs. Privia Health Group | Nutex Health vs. HealthStream |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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