Correlation Between Hyperfine and SurModics
Can any of the company-specific risk be diversified away by investing in both Hyperfine and SurModics 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 Hyperfine and SurModics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hyperfine and SurModics, you can compare the effects of market volatilities on Hyperfine and SurModics 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 Hyperfine with a short position of SurModics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hyperfine and SurModics.
Diversification Opportunities for Hyperfine and SurModics
Average diversification
The 3 months correlation between Hyperfine and SurModics is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Hyperfine and SurModics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SurModics and Hyperfine 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 Hyperfine are associated (or correlated) with SurModics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SurModics has no effect on the direction of Hyperfine i.e., Hyperfine and SurModics go up and down completely randomly.
Pair Corralation between Hyperfine and SurModics
Given the investment horizon of 90 days Hyperfine is expected to generate 1.67 times less return on investment than SurModics. In addition to that, Hyperfine is 4.78 times more volatile than SurModics. It trades about 0.04 of its total potential returns per unit of risk. SurModics is currently generating about 0.35 per unit of volatility. If you would invest 3,750 in SurModics on August 31, 2024 and sell it today you would earn a total of 204.00 from holding SurModics or generate 5.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hyperfine vs. SurModics
Performance |
| Timeline |
| Hyperfine |
| SurModics |
Hyperfine and SurModics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hyperfine and SurModics
The main advantage of trading using opposite Hyperfine and SurModics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hyperfine position performs unexpectedly, SurModics 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 SurModics will offset losses from the drop in SurModics' long position.| Hyperfine vs. Neuropace | Hyperfine vs. Orthopediatrics Corp | Hyperfine vs. Anika Therapeutics | Hyperfine vs. PAVmed Inc |
| SurModics vs. Abbott Laboratories | SurModics vs. Medtronic PLC | SurModics vs. Edwards Lifesciences Corp | SurModics vs. ZimVie Inc |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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