Correlation Between Stryker and Aspira Womens

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

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

Diversification Opportunities for Stryker and Aspira Womens

-0.53

Correlation Coefficient

Stryker  Aspira Womens

Excellent diversification

The 3 months correlation between Stryker and Aspira is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Stryker and Aspira Womens Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aspira Womens Health and Stryker 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 Stryker are associated (or correlated) with Aspira Womens. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aspira Womens Health has no effect on the direction of Stryker i.e., Stryker and Aspira Womens go up and down completely randomly.

Pair Corralation between Stryker and Aspira Womens

Considering the 90-day investment horizon Stryker is expected to generate 0.12 times more return on investment than Aspira Womens. However, Stryker is 8.44 times less risky than Aspira Womens. It trades about -0.05 of its potential returns per unit of risk. Aspira Womens Health is currently generating about -0.36 per unit of risk. If you would invest  39,515  in Stryker on November 29, 2024 and sell it today you would lose (341.00) from holding Stryker or give up 0.86% of portfolio value over 90 days.

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

Stryker  vs.  Aspira Womens Health

Stryker

Risk-Adjusted Performance

Very Weak

Over the last 90 days Stryker has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent basic indicators, Stryker is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

Aspira Womens Health

Risk-Adjusted Performance

Very Weak

Over the last 90 days Aspira Womens Health has generated negative risk-adjusted returns adding no value to investors with long positions. Despite abnormal performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in March 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with Stryker and Aspira Womens

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

The idea behind Stryker and Aspira Womens Health 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.