Correlation Between Femasys and Edwards Lifesciences
Can any of the company-specific risk be diversified away by investing in both Femasys and Edwards Lifesciences 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 Femasys and Edwards Lifesciences into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Femasys and Edwards Lifesciences Corp, you can compare the effects of market volatilities on Femasys and Edwards Lifesciences 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 Femasys with a short position of Edwards Lifesciences. Check out your portfolio center. Please also check ongoing floating volatility patterns of Femasys and Edwards Lifesciences.
Diversification Opportunities for Femasys and Edwards Lifesciences
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Femasys and Edwards is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Femasys and Edwards Lifesciences Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Edwards Lifesciences Corp and Femasys 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 Femasys are associated (or correlated) with Edwards Lifesciences. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Edwards Lifesciences Corp has no effect on the direction of Femasys i.e., Femasys and Edwards Lifesciences go up and down completely randomly.
Pair Corralation between Femasys and Edwards Lifesciences
Given the investment horizon of 90 days Femasys is expected to under-perform the Edwards Lifesciences. In addition to that, Femasys is 2.98 times more volatile than Edwards Lifesciences Corp. It trades about -0.36 of its total potential returns per unit of risk. Edwards Lifesciences Corp is currently generating about -0.39 per unit of volatility. If you would invest 9,425 in Edwards Lifesciences Corp on February 1, 2024 and sell it today you would lose (958.00) from holding Edwards Lifesciences Corp or give up 10.16% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Femasys vs. Edwards Lifesciences Corp
Performance |
Timeline |
Femasys |
Edwards Lifesciences Corp |
Femasys and Edwards Lifesciences Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Femasys and Edwards Lifesciences
The main advantage of trading using opposite Femasys and Edwards Lifesciences positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Femasys position performs unexpectedly, Edwards Lifesciences 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 Edwards Lifesciences will offset losses from the drop in Edwards Lifesciences' long position.Femasys vs. Novo Integrated Sciences | Femasys vs. HCA Holdings | Femasys vs. Acadia Healthcare | Femasys vs. Pennant Group |
Edwards Lifesciences vs. Novo Integrated Sciences | Edwards Lifesciences vs. HCA Holdings | Edwards Lifesciences vs. Acadia Healthcare | Edwards Lifesciences vs. Pennant Group |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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