Correlation Between Surgical Science and Implantica

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

Diversification Opportunities for Surgical Science and Implantica

-0.76

Correlation Coefficient

Surgical Science  Implantica

Pay attention - limited upside

The 3 months correlation between Surgical and Implantica is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Surgical Science Sweden and Implantica AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Implantica AG 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 Implantica. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Implantica AG has no effect on the direction of Surgical Science i.e., Surgical Science and Implantica go up and down completely randomly.

Pair Corralation between Surgical Science and Implantica

Assuming the 90 days trading horizon Surgical Science is expected to generate 1.01 times less return on investment than Implantica. But when comparing it to its historical volatility, Surgical Science Sweden is 1.18 times less risky than Implantica. It trades about 0.07 of its potential returns per unit of risk. Implantica AG is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  3,000  in Implantica AG on September 24, 2024 and sell it today you would earn a total of  645.00  from holding Implantica AG or generate 21.5% return on investment over 90 days.

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

Surgical Science Sweden  vs.  Implantica AG

Surgical Science Sweden

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Surgical Science Sweden are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Surgical Science unveiled solid returns over the last few months and may actually be approaching a breakup point.

Implantica AG

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Implantica AG has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in January 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Surgical Science and Implantica

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

The idea behind Surgical Science Sweden and Implantica AG 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.