Correlation Between STRATA Skin and Aurora Spine
Can any of the company-specific risk be diversified away by investing in both STRATA Skin and Aurora Spine 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 STRATA Skin and Aurora Spine into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between STRATA Skin Sciences and Aurora Spine, you can compare the effects of market volatilities on STRATA Skin and Aurora Spine 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 STRATA Skin with a short position of Aurora Spine. Check out your portfolio center. Please also check ongoing floating volatility patterns of STRATA Skin and Aurora Spine.
Diversification Opportunities for STRATA Skin and Aurora Spine
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between STRATA and Aurora is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding STRATA Skin Sciences and Aurora Spine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aurora Spine and STRATA Skin 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 STRATA Skin Sciences are associated (or correlated) with Aurora Spine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aurora Spine has no effect on the direction of STRATA Skin i.e., STRATA Skin and Aurora Spine go up and down completely randomly.
Pair Corralation between STRATA Skin and Aurora Spine
Given the investment horizon of 90 days STRATA Skin Sciences is expected to under-perform the Aurora Spine. In addition to that, STRATA Skin is 1.33 times more volatile than Aurora Spine. It trades about -0.01 of its total potential returns per unit of risk. Aurora Spine is currently generating about 0.04 per unit of volatility. If you would invest 22.00 in Aurora Spine on August 31, 2024 and sell it today you would earn a total of 8.00 from holding Aurora Spine or generate 36.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.73% |
| Values | Daily Returns |
STRATA Skin Sciences vs. Aurora Spine
Performance |
| Timeline |
| STRATA Skin Sciences |
| Aurora Spine |
STRATA Skin and Aurora Spine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with STRATA Skin and Aurora Spine
The main advantage of trading using opposite STRATA Skin and Aurora Spine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if STRATA Skin position performs unexpectedly, Aurora Spine 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 Aurora Spine will offset losses from the drop in Aurora Spine's long position.| STRATA Skin vs. Axogen Inc | STRATA Skin vs. Ainos Inc | STRATA Skin vs. LENSAR Inc | STRATA Skin vs. Nexalin Technology |
| Aurora Spine vs. Sonova Holding AG | Aurora Spine vs. Medtronic PLC | Aurora Spine vs. CONMED | Aurora Spine vs. Glaukos Corp |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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