Correlation Between Helical Bar and Surgical Science
Can any of the company-specific risk be diversified away by investing in both Helical Bar and Surgical Science 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 Helical Bar and Surgical Science into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Helical Bar Plc and Surgical Science Sweden, you can compare the effects of market volatilities on Helical Bar and Surgical Science 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 Helical Bar with a short position of Surgical Science. Check out your portfolio center. Please also check ongoing floating volatility patterns of Helical Bar and Surgical Science.
Diversification Opportunities for Helical Bar and Surgical Science
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Helical and Surgical is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Helical Bar Plc and Surgical Science Sweden in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Surgical Science Sweden and Helical Bar 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 Helical Bar Plc are associated (or correlated) with Surgical Science. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Surgical Science Sweden has no effect on the direction of Helical Bar i.e., Helical Bar and Surgical Science go up and down completely randomly.
Pair Corralation between Helical Bar and Surgical Science
Assuming the 90 days trading horizon Helical Bar Plc is expected to under-perform the Surgical Science. But the stock apears to be less risky and, when comparing its historical volatility, Helical Bar Plc is 1.6 times less risky than Surgical Science. The stock trades about -0.04 of its potential returns per unit of risk. The Surgical Science Sweden is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 14,350 in Surgical Science Sweden on September 1, 2024 and sell it today you would earn a total of 600.00 from holding Surgical Science Sweden or generate 4.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Helical Bar Plc vs. Surgical Science Sweden
Performance |
| Timeline |
| Helical Bar Plc |
| Surgical Science Sweden |
Helical Bar and Surgical Science Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Helical Bar and Surgical Science
The main advantage of trading using opposite Helical Bar and Surgical Science positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Helical Bar position performs unexpectedly, Surgical Science 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 Surgical Science will offset losses from the drop in Surgical Science's long position.| Helical Bar vs. Cizzle Biotechnology Holdings | Helical Bar vs. Zoom Video Communications | Helical Bar vs. United States Steel | Helical Bar vs. Cars Inc |
| Surgical Science vs. Uniper SE | Surgical Science vs. Mulberry Group PLC | Surgical Science vs. London Security Plc | Surgical Science vs. Triad Group PLC |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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