Correlation Between Surgical Science and Team Internet

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

By analyzing existing cross correlation between Surgical Science Sweden and Team Internet Group, you can compare the effects of market volatilities on Surgical Science and Team Internet 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 Surgical Science with a short position of Team Internet. Check out your portfolio center. Please also check ongoing floating volatility patterns of Surgical Science and Team Internet.

Diversification Opportunities for Surgical Science and Team Internet

-0.76

Correlation Coefficient

Surgical Science  Team Internet

Pay attention - limited upside

The 3 months correlation between Surgical and Team is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Surgical Science Sweden and Team Internet Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Team Internet Group and Surgical Science 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 Surgical Science Sweden are associated (or correlated) with Team Internet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Team Internet Group has no effect on the direction of Surgical Science i.e., Surgical Science and Team Internet go up and down completely randomly.

Pair Corralation between Surgical Science and Team Internet

Assuming the 90 days trading horizon Surgical Science Sweden is expected to generate 0.6 times more return on investment than Team Internet. However, Surgical Science Sweden is 1.67 times less risky than Team Internet. It trades about 0.23 of its potential returns per unit of risk. Team Internet Group is currently generating about 0.06 per unit of risk. If you would invest  14,820  in Surgical Science Sweden on October 6, 2024 and sell it today you would earn a total of  840.00  from holding Surgical Science Sweden or generate 5.67% return on investment over 90 days.

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

Surgical Science Sweden  vs.  Team Internet Group

Surgical Science Sweden

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Surgical Science Sweden are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, Surgical Science unveiled solid returns over the last few months and may actually be approaching a breakup point.

Team Internet Group

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Team Internet Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's technical and fundamental indicators remain rather sound which may send shares a bit higher in February 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with Surgical Science and Team Internet

The main advantage of trading using opposite Surgical Science and Team Internet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Surgical Science position performs unexpectedly, Team Internet 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 Team Internet will offset losses from the drop in Team Internet's long position.

The idea behind Surgical Science Sweden and Team Internet Group 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.

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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.