Pair Correlation Between Edwards Lifesciences and Express Scripts

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

Pair Volatility

Allowing for the 30-days total investment horizon, Edwards Lifesciences Corporation is expected to generate 0.67 times more return on investment than Express Scripts. However, Edwards Lifesciences Corporation is 1.49 times less risky than Express Scripts. It trades about 0.17 of its potential returns per unit of risk. Express Scripts Holding Company is currently generating about -0.17 per unit of risk. If you would invest  11,046  in Edwards Lifesciences Corporation on September 23, 2017 and sell it today you would earn a total of  393  from holding Edwards Lifesciences Corporation or generate 3.56% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between Edwards Lifesciences and Express Scripts
-0.01

Parameters

Time Period1 Month [change]
DirectionNegative 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Diversification

Good diversification

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

Comparative Volatility

 Predicted Return Density 
      Returns 

Edwards Lifesciences

  
11 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Edwards Lifesciences Corporation are ranked lower than 11 (%) of all global equities and portfolios over the last 30 days.

Express Scripts Holding

  
0 

Risk-Adjusted Performance

Over the last 30 days Express Scripts Holding Company has generated negative risk-adjusted returns adding no value to investors with long positions.