Correlation Between SurModics and Catheter Precision
Can any of the company-specific risk be diversified away by investing in both SurModics and Catheter Precision 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 Catheter Precision into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SurModics and Catheter Precision, you can compare the effects of market volatilities on SurModics and Catheter Precision 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 Catheter Precision. Check out your portfolio center. Please also check ongoing floating volatility patterns of SurModics and Catheter Precision.
Diversification Opportunities for SurModics and Catheter Precision
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between SurModics and Catheter is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding SurModics and Catheter Precision in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Catheter Precision 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 Catheter Precision. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Catheter Precision has no effect on the direction of SurModics i.e., SurModics and Catheter Precision go up and down completely randomly.
Pair Corralation between SurModics and Catheter Precision
Given the investment horizon of 90 days SurModics is expected to generate 0.38 times more return on investment than Catheter Precision. However, SurModics is 2.65 times less risky than Catheter Precision. It trades about 0.02 of its potential returns per unit of risk. Catheter Precision is currently generating about -0.07 per unit of risk. If you would invest 3,584 in SurModics on August 28, 2024 and sell it today you would earn a total of 372.00 from holding SurModics or generate 10.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SurModics vs. Catheter Precision
Performance |
| Timeline |
| SurModics |
| Catheter Precision |
SurModics and Catheter Precision Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SurModics and Catheter Precision
The main advantage of trading using opposite SurModics and Catheter Precision positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SurModics position performs unexpectedly, Catheter Precision 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 Catheter Precision will offset losses from the drop in Catheter Precision's long position.| SurModics vs. LivaNova PLC | SurModics vs. Electromed | SurModics vs. Orthopediatrics Corp | SurModics vs. Neuropace |
| Catheter Precision vs. Heartbeam | Catheter Precision vs. EUDA Health Holdings | Catheter Precision vs. Nutex Health | Catheter Precision 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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