Correlation Between Tela Bio and SurModics
Can any of the company-specific risk be diversified away by investing in both Tela Bio and SurModics 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 Tela Bio and SurModics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tela Bio and SurModics, you can compare the effects of market volatilities on Tela Bio and SurModics 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 Tela Bio with a short position of SurModics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tela Bio and SurModics.
Diversification Opportunities for Tela Bio and SurModics
Significant diversification
The 3 months correlation between Tela and SurModics is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Tela Bio and SurModics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SurModics and Tela Bio 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 Tela Bio are associated (or correlated) with SurModics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SurModics has no effect on the direction of Tela Bio i.e., Tela Bio and SurModics go up and down completely randomly.
Pair Corralation between Tela Bio and SurModics
Given the investment horizon of 90 days Tela Bio is expected to generate 1.21 times less return on investment than SurModics. In addition to that, Tela Bio is 3.6 times more volatile than SurModics. It trades about 0.07 of its total potential returns per unit of risk. SurModics is currently generating about 0.3 per unit of volatility. If you would invest 3,780 in SurModics on August 28, 2024 and sell it today you would earn a total of 176.00 from holding SurModics or generate 4.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tela Bio vs. SurModics
Performance |
| Timeline |
| Tela Bio |
| SurModics |
Tela Bio and SurModics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tela Bio and SurModics
The main advantage of trading using opposite Tela Bio and SurModics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tela Bio position performs unexpectedly, SurModics 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 SurModics will offset losses from the drop in SurModics' long position.| Tela Bio vs. Sight Sciences | Tela Bio vs. Tactile Systems Technology | Tela Bio vs. Clearpoint Neuro | Tela Bio vs. CVRx Inc |
| SurModics vs. LivaNova PLC | SurModics vs. Electromed | SurModics vs. Orthopediatrics Corp | SurModics vs. Neuropace |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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