Correlation Between Sonova Holding and Glaukos Corp
Can any of the company-specific risk be diversified away by investing in both Sonova Holding and Glaukos Corp 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 Sonova Holding and Glaukos Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sonova Holding AG and Glaukos Corp, you can compare the effects of market volatilities on Sonova Holding and Glaukos Corp 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 Sonova Holding with a short position of Glaukos Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sonova Holding and Glaukos Corp.
Diversification Opportunities for Sonova Holding and Glaukos Corp
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Sonova and Glaukos is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Sonova Holding AG and Glaukos Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Glaukos Corp and Sonova Holding 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 Sonova Holding AG are associated (or correlated) with Glaukos Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Glaukos Corp has no effect on the direction of Sonova Holding i.e., Sonova Holding and Glaukos Corp go up and down completely randomly.
Pair Corralation between Sonova Holding and Glaukos Corp
Assuming the 90 days horizon Sonova Holding AG is expected to under-perform the Glaukos Corp. But the pink sheet apears to be less risky and, when comparing its historical volatility, Sonova Holding AG is 1.97 times less risky than Glaukos Corp. The pink sheet trades about -0.22 of its potential returns per unit of risk. The Glaukos Corp is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 13,225 in Glaukos Corp on September 1, 2024 and sell it today you would earn a total of 1,140 from holding Glaukos Corp or generate 8.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sonova Holding AG vs. Glaukos Corp
Performance |
| Timeline |
| Sonova Holding AG |
| Glaukos Corp |
Sonova Holding and Glaukos Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sonova Holding and Glaukos Corp
The main advantage of trading using opposite Sonova Holding and Glaukos Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sonova Holding position performs unexpectedly, Glaukos Corp 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 Glaukos Corp will offset losses from the drop in Glaukos Corp's long position.| Sonova Holding vs. Medtronic PLC | Sonova Holding vs. CONMED | Sonova Holding vs. Glaukos Corp | Sonova Holding vs. Integer Holdings Corp |
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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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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