Correlation Between RaySearch Laboratories and Surgical Science
Can any of the company-specific risk be diversified away by investing in both RaySearch Laboratories 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 RaySearch Laboratories and Surgical Science into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between RaySearch Laboratories AB and Surgical Science Sweden, you can compare the effects of market volatilities on RaySearch Laboratories 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 RaySearch Laboratories with a short position of Surgical Science. Check out your portfolio center. Please also check ongoing floating volatility patterns of RaySearch Laboratories and Surgical Science.
Diversification Opportunities for RaySearch Laboratories and Surgical Science
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between RaySearch and Surgical is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding RaySearch Laboratories AB 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 RaySearch Laboratories 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 RaySearch Laboratories AB 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 RaySearch Laboratories i.e., RaySearch Laboratories and Surgical Science go up and down completely randomly.
Pair Corralation between RaySearch Laboratories and Surgical Science
Assuming the 90 days trading horizon RaySearch Laboratories AB is expected to generate 0.89 times more return on investment than Surgical Science. However, RaySearch Laboratories AB is 1.13 times less risky than Surgical Science. It trades about 0.16 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 8,811 in RaySearch Laboratories AB on November 5, 2024 and sell it today you would earn a total of 14,789 from holding RaySearch Laboratories AB or generate 167.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
RaySearch Laboratories AB vs. Surgical Science Sweden
Performance |
| Timeline |
| RaySearch Laboratories |
| Surgical Science Sweden |
RaySearch Laboratories and Surgical Science Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with RaySearch Laboratories and Surgical Science
The main advantage of trading using opposite RaySearch Laboratories and Surgical Science positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if RaySearch Laboratories 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.| RaySearch Laboratories vs. Elekta AB | RaySearch Laboratories vs. Vitrolife AB | RaySearch Laboratories vs. CellaVision AB | RaySearch Laboratories vs. Probi AB |
| Surgical Science vs. BICO Group AB | Surgical Science vs. Hexatronic Group AB | Surgical Science vs. Swedencare publ AB | Surgical Science vs. MIPS AB |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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