Correlation Between Stryker and Superior Plus
Can any of the company-specific risk be diversified away by investing in both Stryker and Superior Plus 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 Superior Plus into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stryker and Superior Plus Corp, you can compare the effects of market volatilities on Stryker and Superior Plus 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 Superior Plus. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stryker and Superior Plus.
Diversification Opportunities for Stryker and Superior Plus
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Stryker and Superior is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Stryker and Superior Plus Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Superior Plus Corp 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 Superior Plus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Superior Plus Corp has no effect on the direction of Stryker i.e., Stryker and Superior Plus go up and down completely randomly.
Pair Corralation between Stryker and Superior Plus
Assuming the 90 days horizon Stryker is expected to generate 0.38 times more return on investment than Superior Plus. However, Stryker is 2.61 times less risky than Superior Plus. It trades about 0.3 of its potential returns per unit of risk. Superior Plus Corp is currently generating about -0.01 per unit of risk. If you would invest 32,820 in Stryker on August 29, 2024 and sell it today you would earn a total of 4,300 from holding Stryker or generate 13.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stryker vs. Superior Plus Corp
Performance |
| Timeline |
| Stryker |
| Superior Plus Corp |
Stryker and Superior Plus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stryker and Superior Plus
The main advantage of trading using opposite Stryker and Superior Plus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stryker position performs unexpectedly, Superior Plus 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 Superior Plus will offset losses from the drop in Superior Plus' long position.| Stryker vs. Superior Plus Corp | Stryker vs. NMI Holdings | Stryker vs. Origin Agritech | Stryker vs. SIVERS SEMICONDUCTORS AB |
| Superior Plus vs. Canon Marketing Japan | Superior Plus vs. CANON MARKETING JP | Superior Plus vs. KRISPY KREME DL 01 | Superior Plus vs. SIDETRADE EO 1 |
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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