Correlation Between ABIOMED and ETF Securities
Can any of the company-specific risk be diversified away by investing in both ABIOMED and ETF Securities 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 ABIOMED and ETF Securities into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ABIOMED and ETF Securities, you can compare the effects of market volatilities on ABIOMED and ETF Securities 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 ABIOMED with a short position of ETF Securities. Check out your portfolio center. Please also check ongoing floating volatility patterns of ABIOMED and ETF Securities.
Diversification Opportunities for ABIOMED and ETF Securities
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ABIOMED and ETF is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ABIOMED and ETF Securities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ETF Securities and ABIOMED 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 ABIOMED are associated (or correlated) with ETF Securities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ETF Securities has no effect on the direction of ABIOMED i.e., ABIOMED and ETF Securities go up and down completely randomly.
Pair Corralation between ABIOMED and ETF Securities
If you would invest (100.00) in ETF Securities on January 19, 2024 and sell it today you would earn a total of 100.00 from holding ETF Securities or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ABIOMED vs. ETF Securities
Performance |
| Timeline |
| ABIOMED |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| ETF Securities |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
ABIOMED and ETF Securities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ABIOMED and ETF Securities
The main advantage of trading using opposite ABIOMED and ETF Securities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ABIOMED position performs unexpectedly, ETF Securities 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 ETF Securities will offset losses from the drop in ETF Securities' long position.| ABIOMED vs. Marfrig Global Foods | ABIOMED vs. Grocery Outlet Holding | ABIOMED vs. CAVA Group | ABIOMED vs. Rave Restaurant Group |
| ETF Securities vs. Vanguard Total Stock | ETF Securities vs. SPDR SP 500 | ETF Securities vs. iShares Core SP | ETF Securities vs. Vanguard Total Bond |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |