Correlation Between Stryker and Nanomix

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

By analyzing existing cross correlation between Stryker and Nanomix, you can compare the effects of market volatilities on Stryker and Nanomix 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 Nanomix. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stryker and Nanomix.

Diversification Opportunities for Stryker and Nanomix

0.0

Correlation Coefficient

Stryker  Nanomix

Pay attention - limited upside

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

Pair Corralation between Stryker and Nanomix

If you would invest  36,856  in Stryker on December 26, 2024 and sell it today you would earn a total of  431.00  from holding Stryker or generate 1.17% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Stryker  vs.  Nanomix

Stryker

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Stryker are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. 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.

Nanomix

Risk-Adjusted Performance

Very Weak

Over the last 90 days Nanomix has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong primary indicators, Nanomix is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Stryker and Nanomix

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

The idea behind Stryker and Nanomix 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 Commodity Directory module to find actively traded commodities issued by global exchanges.