Correlation Between Bruker and Glaukos Corp

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

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

Diversification Opportunities for Bruker and Glaukos Corp

-0.73

Correlation Coefficient

Bruker  Glaukos Corp

Pay attention - limited upside

The 3 months correlation between Bruker and Glaukos is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Bruker and Glaukos Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Glaukos Corp and Bruker 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 Bruker are associated (or correlated) with Glaukos Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Glaukos Corp has no effect on the direction of Bruker i.e., Bruker and Glaukos Corp go up and down completely randomly.

Pair Corralation between Bruker and Glaukos Corp

Given the investment horizon of 90 days Bruker is expected to under-perform the Glaukos Corp. In addition to that, Bruker is 1.15 times more volatile than Glaukos Corp. It trades about -0.07 of its total potential returns per unit of risk. Glaukos Corp is currently generating about 0.05 per unit of volatility. If you would invest  13,389  in Glaukos Corp on August 30, 2024 and sell it today you would earn a total of  880.00  from holding Glaukos Corp or generate 6.57% return on investment over 90 days.

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

Bruker  vs.  Glaukos Corp

Bruker

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Bruker has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest weak performance, the Stock's forward-looking signals remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the enterprise retail investors.

Glaukos Corp

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Glaukos Corp are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Glaukos Corp may actually be approaching a critical reversion point that can send shares even higher in December 2024.

Pair Trading with Bruker and Glaukos Corp

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

The idea behind Bruker and Glaukos Corp 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.