Correlation Between SurModics and Si Bone
Can any of the company-specific risk be diversified away by investing in both SurModics and Si Bone 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 Si Bone into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SurModics and Si Bone, you can compare the effects of market volatilities on SurModics and Si Bone 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 Si Bone. Check out your portfolio center. Please also check ongoing floating volatility patterns of SurModics and Si Bone.
Diversification Opportunities for SurModics and Si Bone
Very weak diversification
The 3 months correlation between SurModics and SIBN is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding SurModics and Si Bone in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Si Bone 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 Si Bone. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Si Bone has no effect on the direction of SurModics i.e., SurModics and Si Bone go up and down completely randomly.
Pair Corralation between SurModics and Si Bone
Given the investment horizon of 90 days SurModics is expected to generate 1.32 times less return on investment than Si Bone. But when comparing it to its historical volatility, SurModics is 7.3 times less risky than Si Bone. It trades about 0.3 of its potential returns per unit of risk. Si Bone is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,227 in Si Bone on August 28, 2024 and sell it today you would earn a total of 38.00 from holding Si Bone or generate 3.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SurModics vs. Si Bone
Performance |
| Timeline |
| SurModics |
| Si Bone |
SurModics and Si Bone Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SurModics and Si Bone
The main advantage of trading using opposite SurModics and Si Bone positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SurModics position performs unexpectedly, Si Bone 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 Si Bone will offset losses from the drop in Si Bone'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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |