Correlation Between Stryker and SEDANA MEDICAL
Can any of the company-specific risk be diversified away by investing in both Stryker and SEDANA 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 Stryker and SEDANA MEDICAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stryker and SEDANA MEDICAL AB, you can compare the effects of market volatilities on Stryker and SEDANA 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 Stryker with a short position of SEDANA MEDICAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stryker and SEDANA MEDICAL.
Diversification Opportunities for Stryker and SEDANA MEDICAL
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Stryker and SEDANA is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Stryker and SEDANA MEDICAL AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SEDANA MEDICAL AB and Stryker 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 Stryker are associated (or correlated) with SEDANA MEDICAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SEDANA MEDICAL AB has no effect on the direction of Stryker i.e., Stryker and SEDANA MEDICAL go up and down completely randomly.
Pair Corralation between Stryker and SEDANA MEDICAL
Assuming the 90 days horizon Stryker is expected to generate 0.26 times more return on investment than SEDANA MEDICAL. However, Stryker is 3.81 times less risky than SEDANA MEDICAL. It trades about 0.09 of its potential returns per unit of risk. SEDANA MEDICAL AB is currently generating about -0.03 per unit of risk. If you would invest 25,388 in Stryker on September 2, 2024 and sell it today you would earn a total of 11,762 from holding Stryker or generate 46.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stryker vs. SEDANA MEDICAL AB
Performance |
| Timeline |
| Stryker |
| SEDANA MEDICAL AB |
Stryker and SEDANA MEDICAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stryker and SEDANA MEDICAL
The main advantage of trading using opposite Stryker and SEDANA MEDICAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stryker position performs unexpectedly, SEDANA 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 SEDANA MEDICAL will offset losses from the drop in SEDANA MEDICAL's long position.| Stryker vs. Superior Plus Corp | Stryker vs. NMI Holdings | Stryker vs. Origin Agritech | Stryker vs. SIVERS SEMICONDUCTORS AB |
| SEDANA MEDICAL vs. Tower One Wireless | SEDANA MEDICAL vs. H FARM SPA | SEDANA MEDICAL vs. Infrastrutture Wireless Italiane | SEDANA MEDICAL vs. Chongqing Machinery Electric |
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 CEOs Directory module to screen CEOs from public companies around the world.
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