Correlation Between Pulmonx Corp and Stryker
Can any of the company-specific risk be diversified away by investing in both Pulmonx Corp 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 Pulmonx Corp and Stryker into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pulmonx Corp and Stryker, you can compare the effects of market volatilities on Pulmonx Corp 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 Pulmonx Corp with a short position of Stryker. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pulmonx Corp and Stryker.
Diversification Opportunities for Pulmonx Corp and Stryker
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Pulmonx and Stryker is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Pulmonx Corp and Stryker in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stryker 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 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 Pulmonx Corp i.e., Pulmonx Corp and Stryker go up and down completely randomly.
Pair Corralation between Pulmonx Corp and Stryker
Given the investment horizon of 90 days Pulmonx Corp is expected to under-perform the Stryker. In addition to that, Pulmonx Corp is 2.99 times more volatile than Stryker. It trades about -0.01 of its total potential returns per unit of risk. Stryker is currently generating about 0.07 per unit of volatility. If you would invest 25,771 in Stryker on November 19, 2024 and sell it today you would earn a total of 12,747 from holding Stryker or generate 49.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pulmonx Corp vs. Stryker
Performance |
| Timeline |
| Pulmonx Corp |
| Stryker |
Pulmonx Corp and Stryker Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pulmonx Corp and Stryker
The main advantage of trading using opposite Pulmonx Corp and Stryker positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pulmonx Corp 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.| Pulmonx Corp vs. Iradimed Co | Pulmonx Corp vs. Orthofix Medical | Pulmonx Corp vs. Neuropace | Pulmonx Corp vs. Integer Holdings Corp |
| Stryker vs. Boston Scientific Corp | Stryker vs. Abbott Laboratories | Stryker vs. Medtronic PLC | Stryker vs. DexCom 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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