Correlation Between Surgical Science and 4C Group
Can any of the company-specific risk be diversified away by investing in both Surgical Science and 4C Group 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 Surgical Science and 4C Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Surgical Science Sweden and 4C Group AB, you can compare the effects of market volatilities on Surgical Science and 4C Group 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 Surgical Science with a short position of 4C Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Surgical Science and 4C Group.
Diversification Opportunities for Surgical Science and 4C Group
-0.9 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Surgical and 4C Group is -0.9. Overlapping area represents the amount of risk that can be diversified away by holding Surgical Science Sweden and 4C Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 4C Group AB and Surgical Science 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 Surgical Science Sweden are associated (or correlated) with 4C Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 4C Group AB has no effect on the direction of Surgical Science i.e., Surgical Science and 4C Group go up and down completely randomly.
Pair Corralation between Surgical Science and 4C Group
Assuming the 90 days trading horizon Surgical Science Sweden is expected to generate 0.55 times more return on investment than 4C Group. However, Surgical Science Sweden is 1.83 times less risky than 4C Group. It trades about 0.26 of its potential returns per unit of risk. 4C Group AB is currently generating about -0.34 per unit of risk. If you would invest 14,850 in Surgical Science Sweden on September 24, 2024 and sell it today you would earn a total of 1,300 from holding Surgical Science Sweden or generate 8.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Surgical Science Sweden vs. 4C Group AB
Performance |
| Timeline |
| Surgical Science Sweden |
| 4C Group AB |
Surgical Science and 4C Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Surgical Science and 4C Group
The main advantage of trading using opposite Surgical Science and 4C Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Surgical Science position performs unexpectedly, 4C Group 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 4C Group will offset losses from the drop in 4C Group's long position.| Surgical Science vs. BICO Group AB | Surgical Science vs. Hexatronic Group AB | Surgical Science vs. Swedencare publ AB | Surgical Science vs. MIPS AB |
| 4C Group vs. B3 Consulting Group | 4C Group vs. Sleep Cycle AB | 4C Group vs. Avensia publ AB | 4C Group vs. CAG Group AB |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |