Correlation Between Surgical Science and Checkin Group
Can any of the company-specific risk be diversified away by investing in both Surgical Science and Checkin 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 Checkin 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 Checkin Group AB, you can compare the effects of market volatilities on Surgical Science and Checkin 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 Checkin Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Surgical Science and Checkin Group.
Diversification Opportunities for Surgical Science and Checkin Group
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Surgical and Checkin is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Surgical Science Sweden and Checkin Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Checkin 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 Checkin Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Checkin Group AB has no effect on the direction of Surgical Science i.e., Surgical Science and Checkin Group go up and down completely randomly.
Pair Corralation between Surgical Science and Checkin Group
Assuming the 90 days trading horizon Surgical Science Sweden is expected to generate 2.22 times more return on investment than Checkin Group. However, Surgical Science is 2.22 times more volatile than Checkin Group AB. It trades about 0.14 of its potential returns per unit of risk. Checkin Group AB is currently generating about -0.18 per unit of risk. If you would invest 15,500 in Surgical Science Sweden on November 4, 2024 and sell it today you would earn a total of 1,790 from holding Surgical Science Sweden or generate 11.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Surgical Science Sweden vs. Checkin Group AB
Performance |
| Timeline |
| Surgical Science Sweden |
| Checkin Group AB |
Surgical Science and Checkin Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Surgical Science and Checkin Group
The main advantage of trading using opposite Surgical Science and Checkin Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Surgical Science position performs unexpectedly, Checkin 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 Checkin Group will offset losses from the drop in Checkin 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 |
| Checkin Group vs. Bambuser AB | Checkin Group vs. Cint Group AB | Checkin Group vs. Sinch AB | Checkin Group vs. Surgical Science Sweden |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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