Correlation Between Pulmonx Corp and Edwards Lifesciences
Can any of the company-specific risk be diversified away by investing in both Pulmonx Corp and Edwards Lifesciences 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 Pulmonx Corp and Edwards Lifesciences into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pulmonx Corp and Edwards Lifesciences Corp, you can compare the effects of market volatilities on Pulmonx Corp and Edwards Lifesciences 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 Pulmonx Corp with a short position of Edwards Lifesciences. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pulmonx Corp and Edwards Lifesciences.
Diversification Opportunities for Pulmonx Corp and Edwards Lifesciences
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Pulmonx and Edwards is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Pulmonx Corp and Edwards Lifesciences Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Edwards Lifesciences Corp and Pulmonx Corp 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 Pulmonx Corp are associated (or correlated) with Edwards Lifesciences. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Edwards Lifesciences Corp has no effect on the direction of Pulmonx Corp i.e., Pulmonx Corp and Edwards Lifesciences go up and down completely randomly.
Pair Corralation between Pulmonx Corp and Edwards Lifesciences
Given the investment horizon of 90 days Pulmonx Corp is expected to generate 1.87 times more return on investment than Edwards Lifesciences. However, Pulmonx Corp is 1.87 times more volatile than Edwards Lifesciences Corp. It trades about 0.0 of its potential returns per unit of risk. Edwards Lifesciences Corp is currently generating about -0.12 per unit of risk. If you would invest 649.00 in Pulmonx Corp on November 9, 2024 and sell it today you would lose (6.00) from holding Pulmonx Corp or give up 0.92% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pulmonx Corp vs. Edwards Lifesciences Corp
Performance |
| Timeline |
| Pulmonx Corp |
| Edwards Lifesciences Corp |
Pulmonx Corp and Edwards Lifesciences Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pulmonx Corp and Edwards Lifesciences
The main advantage of trading using opposite Pulmonx Corp and Edwards Lifesciences positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pulmonx Corp position performs unexpectedly, Edwards Lifesciences 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 Edwards Lifesciences will offset losses from the drop in Edwards Lifesciences' long position.| Pulmonx Corp vs. Iradimed Co | Pulmonx Corp vs. Orthofix Medical | Pulmonx Corp vs. Neuropace | Pulmonx Corp vs. Integer Holdings Corp |
| Edwards Lifesciences vs. Medtronic PLC | Edwards Lifesciences vs. Abbott Laboratories | Edwards Lifesciences vs. Boston Scientific Corp | Edwards Lifesciences vs. Zimmer Biomet Holdings |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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