Correlation Between Beyond Air and SurModics
Can any of the company-specific risk be diversified away by investing in both Beyond Air 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 Beyond Air and SurModics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Beyond Air and SurModics, you can compare the effects of market volatilities on Beyond Air 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 Beyond Air with a short position of SurModics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beyond Air and SurModics.
Diversification Opportunities for Beyond Air and SurModics
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Beyond and SurModics is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Beyond Air and SurModics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SurModics and Beyond Air 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 Beyond Air 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 Beyond Air i.e., Beyond Air and SurModics go up and down completely randomly.
Pair Corralation between Beyond Air and SurModics
Given the investment horizon of 90 days Beyond Air is expected to generate 9.65 times more return on investment than SurModics. However, Beyond Air is 9.65 times more volatile than SurModics. It trades about 0.19 of its potential returns per unit of risk. SurModics is currently generating about 0.26 per unit of risk. If you would invest 43.00 in Beyond Air on August 27, 2024 and sell it today you would earn a total of 11.00 from holding Beyond Air or generate 25.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beyond Air vs. SurModics
Performance |
| Timeline |
| Beyond Air |
| SurModics |
Beyond Air and SurModics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beyond Air and SurModics
The main advantage of trading using opposite Beyond Air and SurModics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beyond Air 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.| Beyond Air vs. Lucid Diagnostics | Beyond Air vs. Inari Medical | Beyond Air vs. Clearpoint Neuro | Beyond Air vs. Avita Medical |
| 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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