Pair Correlation Between Digirad and Edwards Lifesciences

This module allows you to analyze existing cross correlation between Digirad Corporation and Edwards Lifesciences Corporation. You can compare the effects of market volatilities on Digirad and Edwards Lifesciences 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 Digirad with a short position of Edwards Lifesciences. See also your portfolio center. Please also check ongoing floating volatility patterns of Digirad and Edwards Lifesciences.
 Time Horizon     30 Days    Login   to change
Symbolsvs
 Digirad Corp.  vs   Edwards Lifesciences Corp.
 Performance (%) 
      Timeline 

Pair Volatility

Given the investment horizon of 30 days, Digirad Corporation is expected to generate 4.06 times more return on investment than Edwards Lifesciences. However, Digirad is 4.06 times more volatile than Edwards Lifesciences Corporation. It trades about 0.19 of its potential returns per unit of risk. Edwards Lifesciences Corporation is currently generating about 0.53 per unit of risk. If you would invest  230  in Digirad Corporation on December 24, 2017 and sell it today you would earn a total of  35  from holding Digirad Corporation or generate 15.22% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between Digirad and Edwards Lifesciences
0.58

Parameters

Time Period1 Month [change]
DirectionPositive 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Diversification

Very weak diversification

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

Comparative Volatility

 Predicted Return Density 
      Returns 

Digirad

  
12 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Digirad Corporation are ranked lower than 12 (%) of all global equities and portfolios over the last 30 days.

Edwards Lifesciences

  
35 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Edwards Lifesciences Corporation are ranked lower than 35 (%) of all global equities and portfolios over the last 30 days.