Correlation Between Vivos and Stryker
Can any of the company-specific risk be diversified away by investing in both Vivos 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 Vivos and Stryker into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vivos Inc and Stryker, you can compare the effects of market volatilities on Vivos 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 Vivos with a short position of Stryker. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vivos and Stryker.
Diversification Opportunities for Vivos and Stryker
Pay attention - limited upside
The 3 months correlation between Vivos and Stryker is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding Vivos Inc and Stryker in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stryker and Vivos 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 Vivos Inc 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 Vivos i.e., Vivos and Stryker go up and down completely randomly.
Pair Corralation between Vivos and Stryker
Given the investment horizon of 90 days Vivos Inc is expected to generate 5.11 times more return on investment than Stryker. However, Vivos is 5.11 times more volatile than Stryker. It trades about 0.05 of its potential returns per unit of risk. Stryker is currently generating about 0.07 per unit of risk. If you would invest 4.40 in Vivos Inc on September 19, 2024 and sell it today you would earn a total of 3.32 from holding Vivos Inc or generate 75.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vivos Inc vs. Stryker
Performance |
| Timeline |
| Vivos Inc |
| Stryker |
Vivos and Stryker Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vivos and Stryker
The main advantage of trading using opposite Vivos and Stryker positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vivos 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.| Vivos vs. Abbott Laboratories | Vivos vs. Stryker | Vivos vs. Boston Scientific Corp | Vivos vs. Medtronic PLC |
| 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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