Correlation Between Edwards Lifesciences and SPY
Can any of the company-specific risk be diversified away by investing in both Edwards Lifesciences and SPY 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 Edwards Lifesciences and SPY into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Edwards Lifesciences Corp and SPY Inc, you can compare the effects of market volatilities on Edwards Lifesciences and SPY 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 SPY. Check out your portfolio center. Please also check ongoing floating volatility patterns of Edwards Lifesciences and SPY.
Diversification Opportunities for Edwards Lifesciences and SPY
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Edwards and SPY is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Edwards Lifesciences Corp and SPY Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPY Inc 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 Corp are associated (or correlated) with SPY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPY Inc has no effect on the direction of Edwards Lifesciences i.e., Edwards Lifesciences and SPY go up and down completely randomly.
Pair Corralation between Edwards Lifesciences and SPY
If you would invest 7,243 in Edwards Lifesciences Corp on January 24, 2024 and sell it today you would earn a total of 1,453 from holding Edwards Lifesciences Corp or generate 20.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Edwards Lifesciences Corp vs. SPY Inc
Performance |
| Timeline |
| Edwards Lifesciences Corp |
| SPY Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Edwards Lifesciences and SPY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Edwards Lifesciences and SPY
The main advantage of trading using opposite Edwards Lifesciences and SPY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Edwards Lifesciences position performs unexpectedly, SPY 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 SPY will offset losses from the drop in SPY's long position.| Edwards Lifesciences vs. HealthStream | Edwards Lifesciences vs. National Research Corp | Edwards Lifesciences vs. HealthEquity | Edwards Lifesciences vs. Health Catalyst |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |