Correlation Between Rapid Micro and SurModics
Can any of the company-specific risk be diversified away by investing in both Rapid Micro and SurModics 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 Rapid Micro and SurModics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Rapid Micro Biosystems and SurModics, you can compare the effects of market volatilities on Rapid Micro and SurModics 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 Rapid Micro with a short position of SurModics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rapid Micro and SurModics.
Diversification Opportunities for Rapid Micro and SurModics
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Rapid and SurModics is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Rapid Micro Biosystems and SurModics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SurModics and Rapid Micro 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 Rapid Micro Biosystems are associated (or correlated) with SurModics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SurModics has no effect on the direction of Rapid Micro i.e., Rapid Micro and SurModics go up and down completely randomly.
Pair Corralation between Rapid Micro and SurModics
Given the investment horizon of 90 days Rapid Micro Biosystems is expected to under-perform the SurModics. In addition to that, Rapid Micro is 5.93 times more volatile than SurModics. It trades about -0.07 of its total potential returns per unit of risk. SurModics is currently generating about 0.34 per unit of volatility. If you would invest 3,751 in SurModics on August 30, 2024 and sell it today you would earn a total of 203.00 from holding SurModics or generate 5.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rapid Micro Biosystems vs. SurModics
Performance |
| Timeline |
| Rapid Micro Biosystems |
| SurModics |
Rapid Micro and SurModics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rapid Micro and SurModics
The main advantage of trading using opposite Rapid Micro and SurModics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rapid Micro position performs unexpectedly, SurModics 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 SurModics will offset losses from the drop in SurModics' long position.| Rapid Micro vs. Rxsight | Rapid Micro vs. Axogen Inc | Rapid Micro vs. Treace Medical Concepts | Rapid Micro vs. Pulmonx Corp |
| SurModics vs. LivaNova PLC | SurModics vs. Electromed | SurModics vs. Orthopediatrics Corp | SurModics vs. Neuropace |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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