Correlation Between Surgical Science and Cyber Security
Can any of the company-specific risk be diversified away by investing in both Surgical Science and Cyber Security 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 Cyber Security 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 Cyber Security 1, you can compare the effects of market volatilities on Surgical Science and Cyber Security 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 Cyber Security. Check out your portfolio center. Please also check ongoing floating volatility patterns of Surgical Science and Cyber Security.
Diversification Opportunities for Surgical Science and Cyber Security
-0.84 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Surgical and Cyber is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding Surgical Science Sweden and Cyber Security 1 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cyber Security 1 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 Cyber Security. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cyber Security 1 has no effect on the direction of Surgical Science i.e., Surgical Science and Cyber Security go up and down completely randomly.
Pair Corralation between Surgical Science and Cyber Security
Assuming the 90 days trading horizon Surgical Science Sweden is expected to generate 0.54 times more return on investment than Cyber Security. However, Surgical Science Sweden is 1.85 times less risky than Cyber Security. It trades about 0.21 of its potential returns per unit of risk. Cyber Security 1 is currently generating about -0.2 per unit of risk. If you would invest 12,610 in Surgical Science Sweden on September 24, 2024 and sell it today you would earn a total of 3,540 from holding Surgical Science Sweden or generate 28.07% 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. Cyber Security 1
Performance |
| Timeline |
| Surgical Science Sweden |
| Cyber Security 1 |
Surgical Science and Cyber Security Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Surgical Science and Cyber Security
The main advantage of trading using opposite Surgical Science and Cyber Security positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Surgical Science position performs unexpectedly, Cyber Security 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 Cyber Security will offset losses from the drop in Cyber Security'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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |