Correlation Between SurModics and Hyperfine
Can any of the company-specific risk be diversified away by investing in both SurModics and Hyperfine 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 Hyperfine into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SurModics and Hyperfine, you can compare the effects of market volatilities on SurModics and Hyperfine 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 Hyperfine. Check out your portfolio center. Please also check ongoing floating volatility patterns of SurModics and Hyperfine.
Diversification Opportunities for SurModics and Hyperfine
Average diversification
The 3 months correlation between SurModics and Hyperfine is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding SurModics and Hyperfine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hyperfine 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 Hyperfine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hyperfine has no effect on the direction of SurModics i.e., SurModics and Hyperfine go up and down completely randomly.
Pair Corralation between SurModics and Hyperfine
Given the investment horizon of 90 days SurModics is expected to generate 0.21 times more return on investment than Hyperfine. However, SurModics is 4.78 times less risky than Hyperfine. It trades about 0.32 of its potential returns per unit of risk. Hyperfine is currently generating about 0.06 per unit of risk. If you would invest 3,763 in SurModics on September 2, 2024 and sell it today you would earn a total of 182.00 from holding SurModics or generate 4.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SurModics vs. Hyperfine
Performance |
| Timeline |
| SurModics |
| Hyperfine |
SurModics and Hyperfine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SurModics and Hyperfine
The main advantage of trading using opposite SurModics and Hyperfine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SurModics position performs unexpectedly, Hyperfine 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 Hyperfine will offset losses from the drop in Hyperfine's long position.| SurModics vs. Profound Medical Corp | SurModics vs. Si Bone | SurModics vs. Nevro Corp | SurModics vs. Orthopediatrics Corp |
| Hyperfine vs. Neuropace | Hyperfine vs. Orthopediatrics Corp | Hyperfine vs. Anika Therapeutics | Hyperfine vs. PAVmed Inc |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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