Correlation Between Stryker and XTANT MEDICAL
Can any of the company-specific risk be diversified away by investing in both Stryker and XTANT 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 XTANT MEDICAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stryker and XTANT MEDICAL HLDGS, you can compare the effects of market volatilities on Stryker and XTANT 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 XTANT MEDICAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stryker and XTANT MEDICAL.
Diversification Opportunities for Stryker and XTANT MEDICAL
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Stryker and XTANT is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Stryker and XTANT MEDICAL HLDGS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XTANT MEDICAL HLDGS 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 XTANT MEDICAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XTANT MEDICAL HLDGS has no effect on the direction of Stryker i.e., Stryker and XTANT MEDICAL go up and down completely randomly.
Pair Corralation between Stryker and XTANT MEDICAL
Assuming the 90 days horizon Stryker is expected to under-perform the XTANT MEDICAL. But the stock apears to be less risky and, when comparing its historical volatility, Stryker is 6.93 times less risky than XTANT MEDICAL. The stock trades about -0.1 of its potential returns per unit of risk. The XTANT MEDICAL HLDGS is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 36.00 in XTANT MEDICAL HLDGS on October 13, 2024 and sell it today you would earn a total of 11.00 from holding XTANT MEDICAL HLDGS or generate 30.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stryker vs. XTANT MEDICAL HLDGS
Performance |
| Timeline |
| Stryker |
| XTANT MEDICAL HLDGS |
Stryker and XTANT MEDICAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stryker and XTANT MEDICAL
The main advantage of trading using opposite Stryker and XTANT MEDICAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stryker position performs unexpectedly, XTANT 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 XTANT MEDICAL will offset losses from the drop in XTANT MEDICAL's long position.| Stryker vs. INSURANCE AUST GRP | Stryker vs. YOOMA WELLNESS INC | Stryker vs. Vienna Insurance Group | Stryker vs. Zurich Insurance Group |
| XTANT MEDICAL vs. Costco Wholesale Corp | XTANT MEDICAL vs. The Home Depot | XTANT MEDICAL vs. AEON STORES | XTANT MEDICAL vs. PICKN PAY STORES |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |