Correlation Between Sanara Medtech and Alcon AG
Can any of the company-specific risk be diversified away by investing in both Sanara Medtech and Alcon AG 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 Sanara Medtech and Alcon AG into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sanara Medtech and Alcon AG, you can compare the effects of market volatilities on Sanara Medtech and Alcon AG 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 Sanara Medtech with a short position of Alcon AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sanara Medtech and Alcon AG.
Diversification Opportunities for Sanara Medtech and Alcon AG
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Sanara and Alcon is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Sanara Medtech and Alcon AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alcon AG and Sanara Medtech 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 Sanara Medtech are associated (or correlated) with Alcon AG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alcon AG has no effect on the direction of Sanara Medtech i.e., Sanara Medtech and Alcon AG go up and down completely randomly.
Pair Corralation between Sanara Medtech and Alcon AG
Given the investment horizon of 90 days Sanara Medtech is expected to generate 1.06 times less return on investment than Alcon AG. In addition to that, Sanara Medtech is 2.27 times more volatile than Alcon AG. It trades about 0.02 of its total potential returns per unit of risk. Alcon AG is currently generating about 0.04 per unit of volatility. If you would invest 7,126 in Alcon AG on September 3, 2024 and sell it today you would earn a total of 1,759 from holding Alcon AG or generate 24.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sanara Medtech vs. Alcon AG
Performance |
| Timeline |
| Sanara Medtech |
| Alcon AG |
Sanara Medtech and Alcon AG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sanara Medtech and Alcon AG
The main advantage of trading using opposite Sanara Medtech and Alcon AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sanara Medtech position performs unexpectedly, Alcon AG 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 Alcon AG will offset losses from the drop in Alcon AG's long position.| Sanara Medtech vs. Becton Dickinson and | Sanara Medtech vs. Merit Medical Systems | Sanara Medtech vs. AptarGroup |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |