Correlation Between St Jude and Vascular Solutions
Can any of the company-specific risk be diversified away by investing in both St Jude and Vascular Solutions 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 Vascular Solutions 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 Vascular Solutions, you can compare the effects of market volatilities on St Jude and Vascular Solutions 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 Vascular Solutions. Check out your portfolio center. Please also check ongoing floating volatility patterns of St Jude and Vascular Solutions.
Diversification Opportunities for St Jude and Vascular Solutions
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between STJ and Vascular is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding St Jude Medical and Vascular Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vascular Solutions 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 Vascular Solutions. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vascular Solutions has no effect on the direction of St Jude i.e., St Jude and Vascular Solutions go up and down completely randomly.
Pair Corralation between St Jude and Vascular Solutions
If you would invest (100.00) in Vascular Solutions on January 25, 2024 and sell it today you would earn a total of 100.00 from holding Vascular Solutions or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
St Jude Medical vs. Vascular Solutions
Performance |
| Timeline |
| St Jude Medical |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Vascular Solutions |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
St Jude and Vascular Solutions Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with St Jude and Vascular Solutions
The main advantage of trading using opposite St Jude and Vascular Solutions positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if St Jude position performs unexpectedly, Vascular Solutions 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 Vascular Solutions will offset losses from the drop in Vascular Solutions' long position.| St Jude vs. Deluxe | St Jude vs. Pearson PLC ADR | St Jude vs. Dolphin Entertainment | St Jude vs. MYnd Analytics |
| Vascular Solutions vs. Iridium Communications | Vascular Solutions vs. Casio Computer Co | Vascular Solutions vs. Radcom | Vascular Solutions vs. Waste Management |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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