Correlation Between Surgical Science and Bambuser
Can any of the company-specific risk be diversified away by investing in both Surgical Science and Bambuser 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 Bambuser 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 Bambuser AB, you can compare the effects of market volatilities on Surgical Science and Bambuser 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 Bambuser. Check out your portfolio center. Please also check ongoing floating volatility patterns of Surgical Science and Bambuser.
Diversification Opportunities for Surgical Science and Bambuser
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Surgical and Bambuser is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Surgical Science Sweden and Bambuser AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bambuser 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 Bambuser. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bambuser AB has no effect on the direction of Surgical Science i.e., Surgical Science and Bambuser go up and down completely randomly.
Pair Corralation between Surgical Science and Bambuser
Assuming the 90 days trading horizon Surgical Science Sweden is expected to generate 0.59 times more return on investment than Bambuser. However, Surgical Science Sweden is 1.71 times less risky than Bambuser. It trades about 0.0 of its potential returns per unit of risk. Bambuser AB is currently generating about -0.04 per unit of risk. If you would invest 18,354 in Surgical Science Sweden on August 29, 2024 and sell it today you would lose (3,664) from holding Surgical Science Sweden or give up 19.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Surgical Science Sweden vs. Bambuser AB
Performance |
| Timeline |
| Surgical Science Sweden |
| Bambuser AB |
Surgical Science and Bambuser Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Surgical Science and Bambuser
The main advantage of trading using opposite Surgical Science and Bambuser positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Surgical Science position performs unexpectedly, Bambuser 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 Bambuser will offset losses from the drop in Bambuser'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 |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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