Correlation Between SurModics and Bio Rad
Can any of the company-specific risk be diversified away by investing in both SurModics and Bio Rad 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 SurModics and Bio Rad into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SurModics and Bio Rad Laboratories, you can compare the effects of market volatilities on SurModics and Bio Rad 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 SurModics with a short position of Bio Rad. Check out your portfolio center. Please also check ongoing floating volatility patterns of SurModics and Bio Rad.
Diversification Opportunities for SurModics and Bio Rad
Modest diversification
The 3 months correlation between SurModics and Bio is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding SurModics and Bio Rad Laboratories in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bio Rad Laboratories and SurModics 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 SurModics are associated (or correlated) with Bio Rad. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bio Rad Laboratories has no effect on the direction of SurModics i.e., SurModics and Bio Rad go up and down completely randomly.
Pair Corralation between SurModics and Bio Rad
Given the investment horizon of 90 days SurModics is expected to generate 174.57 times less return on investment than Bio Rad. But when comparing it to its historical volatility, SurModics is 34.47 times less risky than Bio Rad. It trades about 0.02 of its potential returns per unit of risk. Bio Rad Laboratories is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 40,466 in Bio Rad Laboratories on September 4, 2024 and sell it today you would lose (6,866) from holding Bio Rad Laboratories or give up 16.97% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 45.45% |
| Values | Daily Returns |
SurModics vs. Bio Rad Laboratories
Performance |
| Timeline |
| SurModics |
| Bio Rad Laboratories |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
SurModics and Bio Rad Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SurModics and Bio Rad
The main advantage of trading using opposite SurModics and Bio Rad positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SurModics position performs unexpectedly, Bio Rad 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 Bio Rad will offset losses from the drop in Bio Rad's long position.| 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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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