Correlation Between SurModics and SINTX Technologies
Can any of the company-specific risk be diversified away by investing in both SurModics and SINTX Technologies 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 SINTX Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SurModics and SINTX Technologies, you can compare the effects of market volatilities on SurModics and SINTX Technologies 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 SINTX Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of SurModics and SINTX Technologies.
Diversification Opportunities for SurModics and SINTX Technologies
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SurModics and SINTX is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding SurModics and SINTX Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SINTX Technologies 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 SINTX Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SINTX Technologies has no effect on the direction of SurModics i.e., SurModics and SINTX Technologies go up and down completely randomly.
Pair Corralation between SurModics and SINTX Technologies
Given the investment horizon of 90 days SurModics is expected to generate 9.91 times less return on investment than SINTX Technologies. But when comparing it to its historical volatility, SurModics is 23.9 times less risky than SINTX Technologies. It trades about 0.34 of its potential returns per unit of risk. SINTX Technologies is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 314.00 in SINTX Technologies on September 1, 2024 and sell it today you would earn a total of 87.00 from holding SINTX Technologies or generate 27.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SurModics vs. SINTX Technologies
Performance |
| Timeline |
| SurModics |
| SINTX Technologies |
SurModics and SINTX Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SurModics and SINTX Technologies
The main advantage of trading using opposite SurModics and SINTX Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SurModics position performs unexpectedly, SINTX Technologies 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 SINTX Technologies will offset losses from the drop in SINTX Technologies' long position.| SurModics vs. LivaNova PLC | SurModics vs. Electromed | SurModics vs. Orthopediatrics Corp | SurModics vs. Neuropace |
| SINTX Technologies vs. ReShape Lifesciences | SINTX Technologies vs. Bone Biologics Corp | SINTX Technologies vs. Tivic Health Systems | SINTX Technologies 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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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