Correlation Between Straumann Holding and AngioDynamics
Can any of the company-specific risk be diversified away by investing in both Straumann Holding and AngioDynamics 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 Straumann Holding and AngioDynamics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Straumann Holding AG and AngioDynamics, you can compare the effects of market volatilities on Straumann Holding and AngioDynamics 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 Straumann Holding with a short position of AngioDynamics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Straumann Holding and AngioDynamics.
Diversification Opportunities for Straumann Holding and AngioDynamics
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Straumann and AngioDynamics is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Straumann Holding AG and AngioDynamics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AngioDynamics and Straumann Holding 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 Straumann Holding AG are associated (or correlated) with AngioDynamics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AngioDynamics has no effect on the direction of Straumann Holding i.e., Straumann Holding and AngioDynamics go up and down completely randomly.
Pair Corralation between Straumann Holding and AngioDynamics
Assuming the 90 days horizon Straumann Holding AG is expected to under-perform the AngioDynamics. But the pink sheet apears to be less risky and, when comparing its historical volatility, Straumann Holding AG is 2.02 times less risky than AngioDynamics. The pink sheet trades about -0.03 of its potential returns per unit of risk. The AngioDynamics is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 742.00 in AngioDynamics on September 11, 2024 and sell it today you would earn a total of 121.00 from holding AngioDynamics or generate 16.31% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Straumann Holding AG vs. AngioDynamics
Performance |
Timeline |
Straumann Holding |
AngioDynamics |
Straumann Holding and AngioDynamics Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Straumann Holding and AngioDynamics
The main advantage of trading using opposite Straumann Holding and AngioDynamics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Straumann Holding position performs unexpectedly, AngioDynamics 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 AngioDynamics will offset losses from the drop in AngioDynamics' long position.Straumann Holding vs. Sysmex Corp | Straumann Holding vs. Coloplast AS | Straumann Holding vs. Essilor International SA | Straumann Holding vs. EssilorLuxottica Socit anonyme |
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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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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