Correlation Between Hologic and STAAR Surgical
Can any of the company-specific risk be diversified away by investing in both Hologic and STAAR Surgical 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 Hologic and STAAR Surgical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hologic and STAAR Surgical, you can compare the effects of market volatilities on Hologic and STAAR Surgical 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 Hologic with a short position of STAAR Surgical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hologic and STAAR Surgical.
Diversification Opportunities for Hologic and STAAR Surgical
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Hologic and STAAR is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Hologic and STAAR Surgical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STAAR Surgical and Hologic 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 Hologic are associated (or correlated) with STAAR Surgical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STAAR Surgical has no effect on the direction of Hologic i.e., Hologic and STAAR Surgical go up and down completely randomly.
Pair Corralation between Hologic and STAAR Surgical
Given the investment horizon of 90 days Hologic is expected to generate 0.37 times more return on investment than STAAR Surgical. However, Hologic is 2.69 times less risky than STAAR Surgical. It trades about -0.04 of its potential returns per unit of risk. STAAR Surgical is currently generating about -0.03 per unit of risk. If you would invest 8,216 in Hologic on September 3, 2024 and sell it today you would lose (266.00) from holding Hologic or give up 3.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hologic vs. STAAR Surgical
Performance |
| Timeline |
| Hologic |
| STAAR Surgical |
Hologic and STAAR Surgical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hologic and STAAR Surgical
The main advantage of trading using opposite Hologic and STAAR Surgical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hologic position performs unexpectedly, STAAR Surgical 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 STAAR Surgical will offset losses from the drop in STAAR Surgical's long position.| Hologic vs. Haemonetics | Hologic vs. ICU Medical | Hologic vs. Envista Holdings Corp | Hologic vs. The Cooper Companies, |
| STAAR Surgical vs. ResMed Inc | STAAR Surgical vs. West Pharmaceutical Services | STAAR Surgical vs. ICU Medical | STAAR Surgical vs. Merit Medical Systems |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |