Correlation Between Surgical Science and Db X

Can any of the company-specific risk be diversified away by investing in both Surgical Science and Db X 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 Db X 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 db x trackers MSCI, you can compare the effects of market volatilities on Surgical Science and Db X 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 Db X. Check out your portfolio center. Please also check ongoing floating volatility patterns of Surgical Science and Db X.

Diversification Opportunities for Surgical Science and Db X

0.92

Correlation Coefficient

Surgical Science  Db X

Almost no diversification

The 3 months correlation between Surgical and XWLD is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Surgical Science Sweden and db x trackers MSCI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on db x trackers 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 Db X. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of db x trackers has no effect on the direction of Surgical Science i.e., Surgical Science and Db X go up and down completely randomly.

Pair Corralation between Surgical Science and Db X

Assuming the 90 days trading horizon Surgical Science Sweden is expected to under-perform the Db X. In addition to that, Surgical Science is 4.37 times more volatile than db x trackers MSCI. It trades about -0.05 of its total potential returns per unit of risk. db x trackers MSCI is currently generating about -0.07 per unit of volatility. If you would invest  945,250  in db x trackers MSCI on December 23, 2024 and sell it today you would lose (37,850) from holding db x trackers MSCI or give up 4.0% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	98.41%
Values	Daily Returns

Surgical Science Sweden  vs.  db x trackers MSCI

Surgical Science Sweden

Risk-Adjusted Performance

Very Weak

Over the last 90 days Surgical Science Sweden has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

db x trackers

Risk-Adjusted Performance

Very Weak

Over the last 90 days db x trackers MSCI has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Db X is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Surgical Science and Db X

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

The idea behind Surgical Science Sweden and db x trackers MSCI 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.