Correlation Between SurModics and Bioventus
Can any of the company-specific risk be diversified away by investing in both SurModics and Bioventus 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 Bioventus into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SurModics and Bioventus, you can compare the effects of market volatilities on SurModics and Bioventus 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 Bioventus. Check out your portfolio center. Please also check ongoing floating volatility patterns of SurModics and Bioventus.
Diversification Opportunities for SurModics and Bioventus
Pay attention - limited upside
The 3 months correlation between SurModics and Bioventus is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding SurModics and Bioventus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bioventus 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 Bioventus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bioventus has no effect on the direction of SurModics i.e., SurModics and Bioventus go up and down completely randomly.
Pair Corralation between SurModics and Bioventus
Given the investment horizon of 90 days SurModics is expected to generate 2.11 times less return on investment than Bioventus. But when comparing it to its historical volatility, SurModics is 1.63 times less risky than Bioventus. It trades about 0.08 of its potential returns per unit of risk. Bioventus is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 270.00 in Bioventus on August 27, 2024 and sell it today you would earn a total of 901.00 from holding Bioventus or generate 333.7% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
SurModics vs. Bioventus
Performance |
Timeline |
SurModics |
Bioventus |
SurModics and Bioventus Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with SurModics and Bioventus
The main advantage of trading using opposite SurModics and Bioventus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SurModics position performs unexpectedly, Bioventus 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 Bioventus will offset losses from the drop in Bioventus' long position.SurModics vs. LivaNova PLC | SurModics vs. Electromed | SurModics vs. Orthopediatrics Corp | SurModics vs. Neuropace |
Bioventus vs. Tivic Health Systems | Bioventus vs. Bluejay Diagnostics | Bioventus vs. Heart Test Laboratories | Bioventus vs. Nuwellis |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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