Correlation Between Stryker and Anika Therapeutics
Can any of the company-specific risk be diversified away by investing in both Stryker and Anika Therapeutics 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 Anika Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stryker and Anika Therapeutics, you can compare the effects of market volatilities on Stryker and Anika Therapeutics 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 Anika Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stryker and Anika Therapeutics.
Diversification Opportunities for Stryker and Anika Therapeutics
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Stryker and Anika is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Stryker and Anika Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anika Therapeutics 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 Anika Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anika Therapeutics has no effect on the direction of Stryker i.e., Stryker and Anika Therapeutics go up and down completely randomly.
Pair Corralation between Stryker and Anika Therapeutics
Considering the 90-day investment horizon Stryker is expected to generate 0.17 times more return on investment than Anika Therapeutics. However, Stryker is 5.73 times less risky than Anika Therapeutics. It trades about 0.28 of its potential returns per unit of risk. Anika Therapeutics is currently generating about -0.17 per unit of risk. If you would invest 36,343 in Stryker on August 31, 2024 and sell it today you would earn a total of 2,872 from holding Stryker or generate 7.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stryker vs. Anika Therapeutics
Performance |
| Timeline |
| Stryker |
| Anika Therapeutics |
Stryker and Anika Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stryker and Anika Therapeutics
The main advantage of trading using opposite Stryker and Anika Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stryker position performs unexpectedly, Anika Therapeutics 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 Anika Therapeutics will offset losses from the drop in Anika Therapeutics' long position.| Stryker vs. Abbott Laboratories | Stryker vs. Medtronic PLC | Stryker vs. Edwards Lifesciences Corp | Stryker vs. ZimVie Inc |
| Anika Therapeutics vs. Axogen Inc | Anika Therapeutics vs. Orthofix Medical | Anika Therapeutics vs. SurModics | Anika Therapeutics vs. Paragon 28 |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |