Correlation Between Sancus Lending and Surgical Science
Can any of the company-specific risk be diversified away by investing in both Sancus Lending 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 Sancus Lending and Surgical Science into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sancus Lending Group and Surgical Science Sweden, you can compare the effects of market volatilities on Sancus Lending 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 Sancus Lending with a short position of Surgical Science. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sancus Lending and Surgical Science.
Diversification Opportunities for Sancus Lending and Surgical Science
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Sancus and Surgical is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Sancus Lending Group 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 Sancus Lending 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 Sancus Lending Group 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 Sancus Lending i.e., Sancus Lending and Surgical Science go up and down completely randomly.
Pair Corralation between Sancus Lending and Surgical Science
Assuming the 90 days trading horizon Sancus Lending Group is expected to generate 3.89 times more return on investment than Surgical Science. However, Sancus Lending is 3.89 times more volatile than Surgical Science Sweden. It trades about 0.02 of its potential returns per unit of risk. Surgical Science Sweden is currently generating about -0.01 per unit of risk. If you would invest 73.00 in Sancus Lending Group on September 12, 2024 and sell it today you would lose (28.00) from holding Sancus Lending Group or give up 38.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
Sancus Lending Group vs. Surgical Science Sweden
Performance |
| Timeline |
| Sancus Lending Group |
| Surgical Science Sweden |
Sancus Lending and Surgical Science Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sancus Lending and Surgical Science
The main advantage of trading using opposite Sancus Lending and Surgical Science positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sancus Lending 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.The idea behind Sancus Lending Group and Surgical Science Sweden pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Transaction History module to view history of all your transactions and understand their impact on performance.
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