Correlation Between SurModics and Establishment Labs
Can any of the company-specific risk be diversified away by investing in both SurModics and Establishment Labs 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 Establishment Labs into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SurModics and Establishment Labs Holdings, you can compare the effects of market volatilities on SurModics and Establishment Labs 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 Establishment Labs. Check out your portfolio center. Please also check ongoing floating volatility patterns of SurModics and Establishment Labs.
Diversification Opportunities for SurModics and Establishment Labs
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between SurModics and Establishment is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding SurModics and Establishment Labs Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Establishment Labs 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 Establishment Labs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Establishment Labs has no effect on the direction of SurModics i.e., SurModics and Establishment Labs go up and down completely randomly.
Pair Corralation between SurModics and Establishment Labs
Given the investment horizon of 90 days SurModics is expected to generate 0.17 times more return on investment than Establishment Labs. However, SurModics is 5.83 times less risky than Establishment Labs. It trades about 0.3 of its potential returns per unit of risk. Establishment Labs Holdings is currently generating about 0.04 per unit of risk. If you would invest 3,780 in SurModics on August 28, 2024 and sell it today you would earn a total of 176.00 from holding SurModics or generate 4.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SurModics vs. Establishment Labs Holdings
Performance |
| Timeline |
| SurModics |
| Establishment Labs |
SurModics and Establishment Labs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SurModics and Establishment Labs
The main advantage of trading using opposite SurModics and Establishment Labs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SurModics position performs unexpectedly, Establishment Labs 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 Establishment Labs will offset losses from the drop in Establishment Labs' long position.| SurModics vs. LivaNova PLC | SurModics vs. Electromed | SurModics vs. Orthopediatrics Corp | SurModics vs. Neuropace |
| Establishment Labs vs. Heartbeam | Establishment Labs vs. EUDA Health Holdings | Establishment Labs vs. Nutex Health | Establishment Labs vs. Healthcare Triangle |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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