Correlation Between SurModics and Owlet
Can any of the company-specific risk be diversified away by investing in both SurModics and Owlet 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 Owlet into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SurModics and Owlet Inc, you can compare the effects of market volatilities on SurModics and Owlet 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 Owlet. Check out your portfolio center. Please also check ongoing floating volatility patterns of SurModics and Owlet.
Diversification Opportunities for SurModics and Owlet
Good diversification
The 3 months correlation between SurModics and Owlet is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding SurModics and Owlet Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Owlet Inc 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 Owlet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Owlet Inc has no effect on the direction of SurModics i.e., SurModics and Owlet go up and down completely randomly.
Pair Corralation between SurModics and Owlet
Given the investment horizon of 90 days SurModics is expected to generate 0.33 times more return on investment than Owlet. However, SurModics is 2.99 times less risky than Owlet. It trades about -0.02 of its potential returns per unit of risk. Owlet Inc is currently generating about -0.04 per unit of risk. If you would invest 3,780 in SurModics on October 26, 2024 and sell it today you would lose (71.00) from holding SurModics or give up 1.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SurModics vs. Owlet Inc
Performance |
| Timeline |
| SurModics |
| Owlet Inc |
SurModics and Owlet Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SurModics and Owlet
The main advantage of trading using opposite SurModics and Owlet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SurModics position performs unexpectedly, Owlet 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 Owlet will offset losses from the drop in Owlet'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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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