Correlation Between Surgical Science and Dignitana
Can any of the company-specific risk be diversified away by investing in both Surgical Science and Dignitana 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 Dignitana 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 Dignitana AB, you can compare the effects of market volatilities on Surgical Science and Dignitana 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 Dignitana. Check out your portfolio center. Please also check ongoing floating volatility patterns of Surgical Science and Dignitana.
Diversification Opportunities for Surgical Science and Dignitana
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Surgical and Dignitana is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Surgical Science Sweden and Dignitana AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dignitana 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 Dignitana. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dignitana AB has no effect on the direction of Surgical Science i.e., Surgical Science and Dignitana go up and down completely randomly.
Pair Corralation between Surgical Science and Dignitana
Assuming the 90 days trading horizon Surgical Science Sweden is expected to generate 0.63 times more return on investment than Dignitana. However, Surgical Science Sweden is 1.58 times less risky than Dignitana. It trades about 0.17 of its potential returns per unit of risk. Dignitana AB is currently generating about -0.2 per unit of risk. If you would invest 13,070 in Surgical Science Sweden on August 27, 2024 and sell it today you would earn a total of 1,780 from holding Surgical Science Sweden or generate 13.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Surgical Science Sweden vs. Dignitana AB
Performance |
| Timeline |
| Surgical Science Sweden |
| Dignitana AB |
Surgical Science and Dignitana Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Surgical Science and Dignitana
The main advantage of trading using opposite Surgical Science and Dignitana positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Surgical Science position performs unexpectedly, Dignitana 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 Dignitana will offset losses from the drop in Dignitana's long position.| Surgical Science vs. AVTECH Sweden AB | Surgical Science vs. K2A Knaust Andersson | Surgical Science vs. Dlaboratory Sweden AB | Surgical Science vs. eEducation Albert 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |