Correlation Between Glaukos Corp and Koninklijke Philips
Can any of the company-specific risk be diversified away by investing in both Glaukos Corp and Koninklijke Philips 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 Koninklijke Philips into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Glaukos Corp and Koninklijke Philips NV, you can compare the effects of market volatilities on Glaukos Corp and Koninklijke Philips 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 Koninklijke Philips. Check out your portfolio center. Please also check ongoing floating volatility patterns of Glaukos Corp and Koninklijke Philips.
Diversification Opportunities for Glaukos Corp and Koninklijke Philips
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Glaukos and Koninklijke is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Glaukos Corp and Koninklijke Philips NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Koninklijke Philips 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 Koninklijke Philips. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Koninklijke Philips has no effect on the direction of Glaukos Corp i.e., Glaukos Corp and Koninklijke Philips go up and down completely randomly.
Pair Corralation between Glaukos Corp and Koninklijke Philips
Given the investment horizon of 90 days Glaukos Corp is expected to generate 0.87 times more return on investment than Koninklijke Philips. However, Glaukos Corp is 1.16 times less risky than Koninklijke Philips. It trades about 0.11 of its potential returns per unit of risk. Koninklijke Philips NV is currently generating about 0.05 per unit of risk. If you would invest 4,468 in Glaukos Corp on August 31, 2024 and sell it today you would earn a total of 9,897 from holding Glaukos Corp or generate 221.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Glaukos Corp vs. Koninklijke Philips NV
Performance |
| Timeline |
| Glaukos Corp |
| Koninklijke Philips |
Glaukos Corp and Koninklijke Philips Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Glaukos Corp and Koninklijke Philips
The main advantage of trading using opposite Glaukos Corp and Koninklijke Philips positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Glaukos Corp position performs unexpectedly, Koninklijke Philips 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 Koninklijke Philips will offset losses from the drop in Koninklijke Philips' long position.| Glaukos Corp vs. Orthopediatrics Corp | Glaukos Corp vs. CONMED | Glaukos Corp vs. LivaNova PLC | Glaukos Corp vs. Paragon 28 |
| Koninklijke Philips vs. Sonova Holding AG | Koninklijke Philips vs. Medtronic PLC | Koninklijke Philips vs. CONMED | Koninklijke Philips vs. Glaukos Corp |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |