Correlation Analysis 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 1.43 times more return on investment than Edwards Lifesciences. However, Digirad is 1.43 times more volatile than Edwards Lifesciences Corporation. It trades about 0.23 of its potential returns per unit of risk. Edwards Lifesciences Corporation is currently generating about -0.14 per unit of risk. If you would invest  162.50  in Digirad Corporation on July 15, 2018 and sell it today you would earn a total of  23.00  from holding Digirad Corporation or generate 14.15% return on investment over 30 days.

Pair Corralation between Digirad and Edwards Lifesciences

-0.68
Time Period1 Month [change]
DirectionNegative 
StrengthWeak
Accuracy95.45%
ValuesDaily Returns

Diversification

Excellent 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  
15 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Digirad Corporation are ranked lower than 15 (%) of all global equities and portfolios over the last 30 days.
Edwards Lifesciences  
0 

Risk-Adjusted Performance

Over the last 30 days Edwards Lifesciences Corporation has generated negative risk-adjusted returns adding no value to investors with long positions.

My Equities

My Current Equities and Potential Positions
View AllNext
GOOG - USA Stock
Alphabet
Specialization
IT, Search Cloud And Integrated IT Services
Business Address1600 Amphitheatre Parkway
ExchangeNASDAQ
$1235.01

Thematic Opportunities

Explore Investment Opportunities
Build portfolios using Macroaxis predefined set of investing ideas. Many of Macroaxis investing ideas can easily outperform a given market. Ideas can also be optimized per your risk profile before portfolio origination is invoked.
Explore Thematic Ideas
Explore Investing Ideas  
See also your portfolio center. Please also try Analyst Recommendations module to analyst recommendations and target price estimates broken down by several categories.