Correlation Between Surgical Science and Redsense Medical
Can any of the company-specific risk be diversified away by investing in both Surgical Science and Redsense Medical 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 Redsense Medical 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 Redsense Medical AB, you can compare the effects of market volatilities on Surgical Science and Redsense Medical 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 Redsense Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Surgical Science and Redsense Medical.
Diversification Opportunities for Surgical Science and Redsense Medical
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Surgical and Redsense is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Surgical Science Sweden and Redsense Medical AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Redsense Medical 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 Redsense Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Redsense Medical has no effect on the direction of Surgical Science i.e., Surgical Science and Redsense Medical go up and down completely randomly.
Pair Corralation between Surgical Science and Redsense Medical
Assuming the 90 days trading horizon Surgical Science Sweden is expected to generate 0.76 times more return on investment than Redsense Medical. However, Surgical Science Sweden is 1.32 times less risky than Redsense Medical. It trades about 0.01 of its potential returns per unit of risk. Redsense Medical AB is currently generating about 0.01 per unit of risk. If you would invest 15,588 in Surgical Science Sweden on September 12, 2024 and sell it today you would lose (498.00) from holding Surgical Science Sweden or give up 3.19% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.39% |
| Values | Daily Returns |
Surgical Science Sweden vs. Redsense Medical AB
Performance |
| Timeline |
| Surgical Science Sweden |
| Redsense Medical |
Surgical Science and Redsense Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Surgical Science and Redsense Medical
The main advantage of trading using opposite Surgical Science and Redsense Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Surgical Science position performs unexpectedly, Redsense Medical 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 Redsense Medical will offset losses from the drop in Redsense Medical'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 |
| Redsense Medical vs. Surgical Science Sweden | Redsense Medical vs. Bonesupport Holding AB | Redsense Medical vs. Swedencare publ AB | Redsense Medical vs. Oncopeptides 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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