Correlation Between SCANDMEDICAL SOLDK-040 and Stryker
Can any of the company-specific risk be diversified away by investing in both SCANDMEDICAL SOLDK-040 and Stryker 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 SCANDMEDICAL SOLDK-040 and Stryker into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SCANDMEDICAL SOLDK 040 and Stryker, you can compare the effects of market volatilities on SCANDMEDICAL SOLDK-040 and Stryker 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 SCANDMEDICAL SOLDK-040 with a short position of Stryker. Check out your portfolio center. Please also check ongoing floating volatility patterns of SCANDMEDICAL SOLDK-040 and Stryker.
Diversification Opportunities for SCANDMEDICAL SOLDK-040 and Stryker
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between SCANDMEDICAL and Stryker is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding SCANDMEDICAL SOLDK 040 and Stryker in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stryker and SCANDMEDICAL SOLDK-040 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 SCANDMEDICAL SOLDK 040 are associated (or correlated) with Stryker. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stryker has no effect on the direction of SCANDMEDICAL SOLDK-040 i.e., SCANDMEDICAL SOLDK-040 and Stryker go up and down completely randomly.
Pair Corralation between SCANDMEDICAL SOLDK-040 and Stryker
Assuming the 90 days horizon SCANDMEDICAL SOLDK-040 is expected to generate 1.26 times less return on investment than Stryker. In addition to that, SCANDMEDICAL SOLDK-040 is 2.11 times more volatile than Stryker. It trades about 0.09 of its total potential returns per unit of risk. Stryker is currently generating about 0.24 per unit of volatility. If you would invest 33,480 in Stryker on August 31, 2024 and sell it today you would earn a total of 3,450 from holding Stryker or generate 10.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SCANDMEDICAL SOLDK 040 vs. Stryker
Performance |
| Timeline |
| SCANDMEDICAL SOLDK 040 |
| Stryker |
SCANDMEDICAL SOLDK-040 and Stryker Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SCANDMEDICAL SOLDK-040 and Stryker
The main advantage of trading using opposite SCANDMEDICAL SOLDK-040 and Stryker positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SCANDMEDICAL SOLDK-040 position performs unexpectedly, Stryker 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 Stryker will offset losses from the drop in Stryker's long position.| SCANDMEDICAL SOLDK-040 vs. Stryker | SCANDMEDICAL SOLDK-040 vs. Align Technology | SCANDMEDICAL SOLDK-040 vs. Insulet | SCANDMEDICAL SOLDK-040 vs. Superior Plus Corp |
| Stryker vs. Digilife Technologies Limited | Stryker vs. Heartland Financial USA | Stryker vs. National Bank Holdings | Stryker vs. Webster Financial |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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