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
Digirad Corp. vs Edwards Lifesciences Corp.
Given the investment horizon of 30 days, Digirad Corporation is expected to under-perform the Edwards Lifesciences. In addition to that, Digirad is 5.03 times more volatile than Edwards Lifesciences Corporation. It trades about -0.34 of its total potential returns per unit of risk. Edwards Lifesciences Corporation is currently generating about 0.11 per unit of volatility. If you would invest 11,064 in Edwards Lifesciences Corporation on September 22, 2017 and sell it today you would earn a total of 244 from holding Edwards Lifesciences Corporation or generate 2.21% return on investment over 30 days.
|Time Period||1 Month [change]|
Very good 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.
Over the last 30 days Digirad Corporation has generated negative risk-adjusted returns adding no value to investors with long positions.
Compared to the overall equity markets, risk-adjusted returns on investments in Edwards Lifesciences Corporation are ranked lower than 7 (%) of all global equities and portfolios over the last 30 days.