Correlation Between St Jude and Icad
Can any of the company-specific risk be diversified away by investing in both St Jude and Icad 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 St Jude and Icad into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between St Jude Medical and icad inc, you can compare the effects of market volatilities on St Jude and Icad 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 St Jude with a short position of Icad. Check out your portfolio center. Please also check ongoing floating volatility patterns of St Jude and Icad.
Diversification Opportunities for St Jude and Icad
Pay attention - limited upside
The 3 months correlation between STJ and Icad is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding St Jude Medical and icad inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on icad inc and St Jude 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 St Jude Medical are associated (or correlated) with Icad. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of icad inc has no effect on the direction of St Jude i.e., St Jude and Icad go up and down completely randomly.
Pair Corralation between St Jude and Icad
If you would invest 155.00 in icad inc on January 24, 2024 and sell it today you would lose (3.00) from holding icad inc or give up 1.94% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
St Jude Medical vs. icad inc
Performance |
Timeline |
St Jude Medical |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
icad inc |
St Jude and Icad Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with St Jude and Icad
The main advantage of trading using opposite St Jude and Icad positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if St Jude position performs unexpectedly, Icad 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 Icad will offset losses from the drop in Icad's long position.St Jude vs. CECO Environmental Corp | St Jude vs. Chester Mining | St Jude vs. Enersys | St Jude vs. ZhongAn Online P |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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