Correlation Between Helius Medical and Stryker
Can any of the company-specific risk be diversified away by investing in both Helius Medical and Stryker 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 Helius Medical and Stryker into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Helius Medical Technologies and Stryker, you can compare the effects of market volatilities on Helius Medical 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 Helius Medical with a short position of Stryker. Check out your portfolio center. Please also check ongoing floating volatility patterns of Helius Medical and Stryker.
Diversification Opportunities for Helius Medical and Stryker
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Helius and Stryker is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Helius Medical Technologies and Stryker in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stryker and Helius Medical 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 Helius Medical Technologies 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 has no effect on the direction of Helius Medical i.e., Helius Medical and Stryker go up and down completely randomly.
Pair Corralation between Helius Medical and Stryker
Given the investment horizon of 90 days Helius Medical Technologies is expected to under-perform the Stryker. In addition to that, Helius Medical is 6.18 times more volatile than Stryker. It trades about -0.3 of its total potential returns per unit of risk. Stryker is currently generating about -0.19 per unit of volatility. If you would invest 35,705 in Stryker on February 7, 2024 and sell it today you would lose (2,860) from holding Stryker or give up 8.01% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Helius Medical Technologies vs. Stryker
Performance |
Timeline |
Helius Medical Techn |
Stryker |
Helius Medical and Stryker Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Helius Medical and Stryker
The main advantage of trading using opposite Helius Medical and Stryker positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Helius Medical 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.Helius Medical vs. Us Global Nanospace | Helius Medical vs. MidCap Financial Investment | Helius Medical vs. Nuveen Core Plus | Helius Medical vs. Sono Tek Corp |
Stryker vs. Us Global Nanospace | Stryker vs. MidCap Financial Investment | Stryker vs. Nuveen Core Plus | Stryker vs. Sono Tek Corp |
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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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