Correlation Between Stryker and Vivos

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Can any of the company-specific risk be diversified away by investing in both Stryker and Vivos 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 Vivos into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stryker and Vivos Inc, you can compare the effects of market volatilities on Stryker and Vivos 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 Vivos. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stryker and Vivos.

Diversification Opportunities for Stryker and Vivos

-0.74
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Stryker and Vivos is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Stryker and Vivos Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vivos Inc 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 Vivos. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vivos Inc has no effect on the direction of Stryker i.e., Stryker and Vivos go up and down completely randomly.

Pair Corralation between Stryker and Vivos

Considering the 90-day investment horizon Stryker is expected to under-perform the Vivos. But the stock apears to be less risky and, when comparing its historical volatility, Stryker is 4.67 times less risky than Vivos. The stock trades about -0.22 of its potential returns per unit of risk. The Vivos Inc is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  8.50  in Vivos Inc on September 23, 2024 and sell it today you would earn a total of  0.30  from holding Vivos Inc or generate 3.53% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy95.45%
ValuesDaily Returns

Stryker  vs.  Vivos Inc

 Performance 
       Timeline  
Stryker 

Risk-Adjusted Performance

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Weak
 
Strong
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 recent stock price mess, may contribute to short-term losses for the institutional investors.
Vivos Inc 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Vivos Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unfluctuating performance in the last few months, the Stock's technical and fundamental indicators remain quite persistent which may send shares a bit higher in January 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Stryker and Vivos Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Stryker and Vivos

The main advantage of trading using opposite Stryker and Vivos positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stryker position performs unexpectedly, Vivos 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 Vivos will offset losses from the drop in Vivos' long position.
The idea behind Stryker and Vivos Inc 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.

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