Correlation Between Novacyt SA and Stryker
Can any of the company-specific risk be diversified away by investing in both Novacyt SA 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 Novacyt SA and Stryker into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Novacyt SA and Stryker, you can compare the effects of market volatilities on Novacyt SA 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 Novacyt SA with a short position of Stryker. Check out your portfolio center. Please also check ongoing floating volatility patterns of Novacyt SA and Stryker.
Diversification Opportunities for Novacyt SA and Stryker
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Novacyt and Stryker is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Novacyt SA and Stryker in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stryker and Novacyt SA 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 Novacyt SA 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 Novacyt SA i.e., Novacyt SA and Stryker go up and down completely randomly.
Pair Corralation between Novacyt SA and Stryker
Assuming the 90 days horizon Novacyt SA is expected to generate 5.05 times more return on investment than Stryker. However, Novacyt SA is 5.05 times more volatile than Stryker. It trades about 0.04 of its potential returns per unit of risk. Stryker is currently generating about 0.03 per unit of risk. If you would invest 54.00 in Novacyt SA on December 8, 2024 and sell it today you would earn a total of 10.00 from holding Novacyt SA or generate 18.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Novacyt SA vs. Stryker
Performance |
| Timeline |
| Novacyt SA |
| Stryker |
Novacyt SA and Stryker Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Novacyt SA and Stryker
The main advantage of trading using opposite Novacyt SA and Stryker positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Novacyt SA 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.| Novacyt SA vs. Aethlon Medical | Novacyt SA vs. Bone Biologics Corp | Novacyt SA vs. Tivic Health Systems | Novacyt SA vs. Cytosorbents Crp |
| 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |