Correlation Between ResMed and Femasys
Can any of the company-specific risk be diversified away by investing in both ResMed and Femasys 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 ResMed and Femasys into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ResMed Inc and Femasys, you can compare the effects of market volatilities on ResMed and Femasys 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 ResMed with a short position of Femasys. Check out your portfolio center. Please also check ongoing floating volatility patterns of ResMed and Femasys.
Diversification Opportunities for ResMed and Femasys
Significant diversification
The 3 months correlation between ResMed and Femasys is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding ResMed Inc and Femasys in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Femasys and ResMed 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 ResMed Inc are associated (or correlated) with Femasys. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Femasys has no effect on the direction of ResMed i.e., ResMed and Femasys go up and down completely randomly.
Pair Corralation between ResMed and Femasys
Considering the 90-day investment horizon ResMed is expected to generate 2.35 times less return on investment than Femasys. But when comparing it to its historical volatility, ResMed Inc is 2.24 times less risky than Femasys. It trades about 0.01 of its potential returns per unit of risk. Femasys is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 112.00 in Femasys on September 4, 2024 and sell it today you would lose (2.00) from holding Femasys or give up 1.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ResMed Inc vs. Femasys
Performance |
| Timeline |
| ResMed Inc |
| Femasys |
ResMed and Femasys Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ResMed and Femasys
The main advantage of trading using opposite ResMed and Femasys positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ResMed position performs unexpectedly, Femasys 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 Femasys will offset losses from the drop in Femasys' long position.| ResMed vs. Teleflex Incorporated | ResMed vs. West Pharmaceutical Services | ResMed vs. Alcon AG | ResMed vs. ICU Medical |
| Femasys vs. Baxter International | Femasys vs. West Pharmaceutical Services | Femasys vs. ResMed Inc | Femasys vs. The Cooper Companies, |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |