Correlation Between Surgical Science and Awardit AB
Can any of the company-specific risk be diversified away by investing in both Surgical Science and Awardit AB 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 Awardit AB 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 Awardit AB, you can compare the effects of market volatilities on Surgical Science and Awardit AB 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 Awardit AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Surgical Science and Awardit AB.
Diversification Opportunities for Surgical Science and Awardit AB
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Surgical and Awardit is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Surgical Science Sweden and Awardit AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Awardit 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 Awardit AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Awardit AB has no effect on the direction of Surgical Science i.e., Surgical Science and Awardit AB go up and down completely randomly.
Pair Corralation between Surgical Science and Awardit AB
Assuming the 90 days trading horizon Surgical Science is expected to generate 5.3 times less return on investment than Awardit AB. But when comparing it to its historical volatility, Surgical Science Sweden is 1.04 times less risky than Awardit AB. It trades about 0.01 of its potential returns per unit of risk. Awardit AB is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 8,926 in Awardit AB on August 29, 2024 and sell it today you would earn a total of 4,074 from holding Awardit AB or generate 45.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 97.45% |
| Values | Daily Returns |
Surgical Science Sweden vs. Awardit AB
Performance |
| Timeline |
| Surgical Science Sweden |
| Awardit AB |
Surgical Science and Awardit AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Surgical Science and Awardit AB
The main advantage of trading using opposite Surgical Science and Awardit AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Surgical Science position performs unexpectedly, Awardit AB 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 Awardit AB will offset losses from the drop in Awardit AB'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 |
| Awardit AB vs. Soder Sportfiske AB | Awardit AB vs. Flexion Mobile PLC | Awardit AB vs. eEducation Albert AB | Awardit AB vs. JLT Mobile Computers |
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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