Correlation Between Heska and SurModics

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

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

Diversification Opportunities for Heska and SurModics

0.0

Correlation Coefficient

Heska  SurModics

Pay attention - limited upside

The 3 months correlation between Heska and SurModics is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Heska and SurModics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SurModics and Heska 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 Heska are associated (or correlated) with SurModics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SurModics has no effect on the direction of Heska i.e., Heska and SurModics go up and down completely randomly.

Pair Corralation between Heska and SurModics

If you would invest (100.00) in Heska on December 29, 2024 and sell it today you would earn a total of  100.00  from holding Heska or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Heska  vs.  SurModics

Heska

Risk-Adjusted Performance

Very Weak

Over the last 90 days Heska has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong forward-looking signals, Heska is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

SurModics

Risk-Adjusted Performance

Very Weak

Over the last 90 days SurModics 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 fundamental indicators remain fairly strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Heska and SurModics

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

The idea behind Heska and SurModics 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.