Correlation Between ICU Medical and EnVVeno Medical
Can any of the company-specific risk be diversified away by investing in both ICU Medical and EnVVeno Medical 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 ICU Medical and EnVVeno Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ICU Medical and enVVeno Medical Corp, you can compare the effects of market volatilities on ICU Medical and EnVVeno Medical 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 ICU Medical with a short position of EnVVeno Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of ICU Medical and EnVVeno Medical.
Diversification Opportunities for ICU Medical and EnVVeno Medical
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between ICU and EnVVeno is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding ICU Medical and enVVeno Medical Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on enVVeno Medical Corp and ICU Medical 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 ICU Medical are associated (or correlated) with EnVVeno Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of enVVeno Medical Corp has no effect on the direction of ICU Medical i.e., ICU Medical and EnVVeno Medical go up and down completely randomly.
Pair Corralation between ICU Medical and EnVVeno Medical
Given the investment horizon of 90 days ICU Medical is expected to generate 0.56 times more return on investment than EnVVeno Medical. However, ICU Medical is 1.8 times less risky than EnVVeno Medical. It trades about -0.21 of its potential returns per unit of risk. enVVeno Medical Corp is currently generating about -0.12 per unit of risk. If you would invest 17,200 in ICU Medical on September 5, 2024 and sell it today you would lose (1,537) from holding ICU Medical or give up 8.94% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ICU Medical vs. enVVeno Medical Corp
Performance |
| Timeline |
| ICU Medical |
| enVVeno Medical Corp |
ICU Medical and EnVVeno Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ICU Medical and EnVVeno Medical
The main advantage of trading using opposite ICU Medical and EnVVeno Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ICU Medical position performs unexpectedly, EnVVeno Medical 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 EnVVeno Medical will offset losses from the drop in EnVVeno Medical's long position.| ICU Medical vs. Merit Medical Systems | ICU Medical vs. The Cooper Companies, | ICU Medical vs. AngioDynamics | ICU Medical vs. AptarGroup |
| EnVVeno Medical vs. Baxter International | EnVVeno Medical vs. West Pharmaceutical Services | EnVVeno Medical vs. ResMed Inc | EnVVeno Medical vs. ICU Medical |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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