Correlation Between 00108WAF7 and STRYKER
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By analyzing existing cross correlation between AEP TEX INC and STRYKER P 4375, you can compare the effects of market volatilities on 00108WAF7 and STRYKER 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 00108WAF7 with a short position of STRYKER. Check out your portfolio center. Please also check ongoing floating volatility patterns of 00108WAF7 and STRYKER.
Diversification Opportunities for 00108WAF7 and STRYKER
Significant diversification
The 3 months correlation between 00108WAF7 and STRYKER is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding AEP TEX INC and STRYKER P 4375 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STRYKER P 4375 and 00108WAF7 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 AEP TEX INC are associated (or correlated) with STRYKER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STRYKER P 4375 has no effect on the direction of 00108WAF7 i.e., 00108WAF7 and STRYKER go up and down completely randomly.
Pair Corralation between 00108WAF7 and STRYKER
Assuming the 90 days trading horizon AEP TEX INC is expected to generate 64.58 times more return on investment than STRYKER. However, 00108WAF7 is 64.58 times more volatile than STRYKER P 4375. It trades about 0.07 of its potential returns per unit of risk. STRYKER P 4375 is currently generating about 0.01 per unit of risk. If you would invest 7,407 in AEP TEX INC on September 3, 2024 and sell it today you would earn a total of 814.00 from holding AEP TEX INC or generate 10.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 53.8% |
| Values | Daily Returns |
AEP TEX INC vs. STRYKER P 4375
Performance |
| Timeline |
| AEP TEX INC |
| STRYKER P 4375 |
00108WAF7 and STRYKER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 00108WAF7 and STRYKER
The main advantage of trading using opposite 00108WAF7 and STRYKER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 00108WAF7 position performs unexpectedly, STRYKER 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 STRYKER will offset losses from the drop in STRYKER's long position.| 00108WAF7 vs. Universal Music Group | 00108WAF7 vs. Pool Corporation | 00108WAF7 vs. Under Armour C | 00108WAF7 vs. Figs Inc |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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