Correlation Between SINTX Technologies and Stryker

Can any of the company-specific risk be diversified away by investing in both SINTX Technologies 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 SINTX Technologies and Stryker into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between SINTX Technologies and Stryker, you can compare the effects of market volatilities on SINTX Technologies 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 SINTX Technologies with a short position of Stryker. Check out your portfolio center. Please also check ongoing floating volatility patterns of SINTX Technologies and Stryker.

Diversification Opportunities for SINTX Technologies and Stryker

0.34

Correlation Coefficient

SINTX Technologies  Stryker

Weak diversification

The 3 months correlation between SINTX and Stryker is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding SINTX Technologies and Stryker in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stryker and SINTX Technologies 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 SINTX 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 SINTX Technologies i.e., SINTX Technologies and Stryker go up and down completely randomly.

Pair Corralation between SINTX Technologies and Stryker

Given the investment horizon of 90 days SINTX Technologies is expected to generate 15.39 times more return on investment than Stryker. However, SINTX Technologies is 15.39 times more volatile than Stryker. It trades about 0.24 of its potential returns per unit of risk. Stryker is currently generating about -0.26 per unit of risk. If you would invest  2.48  in SINTX Technologies on February 7, 2024 and sell it today you would earn a total of  2.21  from holding SINTX Technologies or generate 89.11% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

SINTX Technologies  vs.  Stryker

SINTX Technologies

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days SINTX Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in June 2024. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Stryker

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Stryker has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent basic indicators, Stryker is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with SINTX Technologies and Stryker

The main advantage of trading using opposite SINTX Technologies and Stryker positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SINTX Technologies 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.

The idea behind SINTX Technologies and Stryker pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.