Correlation Between STAAR Surgical and Stereotaxis

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

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

Diversification Opportunities for STAAR Surgical and Stereotaxis

0.62

Correlation Coefficient

STAAR Surgical  Stereotaxis

Poor diversification

The 3 months correlation between STAAR and Stereotaxis is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding STAAR Surgical and Stereotaxis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stereotaxis and STAAR Surgical 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 STAAR Surgical are associated (or correlated) with Stereotaxis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stereotaxis has no effect on the direction of STAAR Surgical i.e., STAAR Surgical and Stereotaxis go up and down completely randomly.

Pair Corralation between STAAR Surgical and Stereotaxis

Given the investment horizon of 90 days STAAR Surgical is expected to under-perform the Stereotaxis. But the stock apears to be less risky and, when comparing its historical volatility, STAAR Surgical is 1.01 times less risky than Stereotaxis. The stock trades about -0.08 of its potential returns per unit of risk. The Stereotaxis is currently generating about -0.07 of returns per unit of risk over similar time horizon. If you would invest  232.00  in Stereotaxis on December 30, 2024 and sell it today you would lose (52.00) from holding Stereotaxis or give up 22.41% of portfolio value over 90 days.

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

STAAR Surgical  vs.  Stereotaxis

STAAR Surgical

Risk-Adjusted Performance

Very Weak

Over the last 90 days STAAR Surgical has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unsteady performance in the last few months, the Stock's basic indicators remain somewhat 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.

Stereotaxis

Risk-Adjusted Performance

Very Weak

Over the last 90 days Stereotaxis 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 basic indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with STAAR Surgical and Stereotaxis

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

The idea behind STAAR Surgical and Stereotaxis 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.