Correlation Between Stryker and Penumbra
Can any of the company-specific risk be diversified away by investing in both Stryker and Penumbra 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 Penumbra into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stryker and Penumbra, you can compare the effects of market volatilities on Stryker and Penumbra 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 Penumbra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stryker and Penumbra.
Diversification Opportunities for Stryker and Penumbra
Poor diversification
The 3 months correlation between Stryker and Penumbra is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Stryker and Penumbra in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Penumbra 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 Penumbra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Penumbra has no effect on the direction of Stryker i.e., Stryker and Penumbra go up and down completely randomly.
Pair Corralation between Stryker and Penumbra
Considering the 90-day investment horizon Stryker is expected to generate 0.51 times more return on investment than Penumbra. However, Stryker is 1.98 times less risky than Penumbra. It trades about 0.07 of its potential returns per unit of risk. Penumbra is currently generating about 0.01 per unit of risk. If you would invest 26,676 in Stryker on August 27, 2024 and sell it today you would earn a total of 11,809 from holding Stryker or generate 44.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stryker vs. Penumbra
Performance |
| Timeline |
| Stryker |
| Penumbra |
Stryker and Penumbra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stryker and Penumbra
The main advantage of trading using opposite Stryker and Penumbra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stryker position performs unexpectedly, Penumbra 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 Penumbra will offset losses from the drop in Penumbra's long position.| Stryker vs. Heartbeam | Stryker vs. EUDA Health Holdings | Stryker vs. Nutex Health | Stryker vs. Healthcare Triangle |
| Penumbra vs. Insulet | Penumbra vs. TransMedics Group | Penumbra vs. Masimo | Penumbra vs. Inspire Medical Systems |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |