Correlation Between Stryker and Aurora Spine
Can any of the company-specific risk be diversified away by investing in both Stryker and Aurora Spine 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 Aurora Spine into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stryker and Aurora Spine, you can compare the effects of market volatilities on Stryker and Aurora Spine 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 Aurora Spine. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stryker and Aurora Spine.
Diversification Opportunities for Stryker and Aurora Spine
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Stryker and Aurora is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Stryker and Aurora Spine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aurora Spine 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 Aurora Spine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aurora Spine has no effect on the direction of Stryker i.e., Stryker and Aurora Spine go up and down completely randomly.
Pair Corralation between Stryker and Aurora Spine
Considering the 90-day investment horizon Stryker is expected to generate 0.66 times more return on investment than Aurora Spine. However, Stryker is 1.52 times less risky than Aurora Spine. It trades about -0.13 of its potential returns per unit of risk. Aurora Spine is currently generating about -0.3 per unit of risk. If you would invest 38,711 in Stryker on September 13, 2024 and sell it today you would lose (1,095) from holding Stryker or give up 2.83% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stryker vs. Aurora Spine
Performance |
| Timeline |
| Stryker |
| Aurora Spine |
Stryker and Aurora Spine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stryker and Aurora Spine
The main advantage of trading using opposite Stryker and Aurora Spine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stryker position performs unexpectedly, Aurora Spine 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 Aurora Spine will offset losses from the drop in Aurora Spine's long position.| Stryker vs. Boston Scientific Corp | Stryker vs. Abbott Laboratories | Stryker vs. Medtronic PLC | Stryker vs. DexCom Inc |
| Aurora Spine vs. Abbott Laboratories | Aurora Spine vs. Stryker | Aurora Spine vs. Boston Scientific Corp | Aurora Spine vs. Medtronic PLC |
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
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |