Correlation Between Star Equity and Edwards Lifesciences
Can any of the company-specific risk be diversified away by investing in both Star Equity and Edwards Lifesciences 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 Star Equity and Edwards Lifesciences into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Star Equity Holdings and Edwards Lifesciences Corp, you can compare the effects of market volatilities on Star Equity 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 Star Equity with a short position of Edwards Lifesciences. Check out your portfolio center. Please also check ongoing floating volatility patterns of Star Equity and Edwards Lifesciences.
Diversification Opportunities for Star Equity and Edwards Lifesciences
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Star and Edwards is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Star Equity Holdings and Edwards Lifesciences Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Edwards Lifesciences Corp and Star Equity 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 Star Equity Holdings 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 Corp has no effect on the direction of Star Equity i.e., Star Equity and Edwards Lifesciences go up and down completely randomly.
Pair Corralation between Star Equity and Edwards Lifesciences
If you would invest 7,516 in Edwards Lifesciences Corp on January 20, 2024 and sell it today you would earn a total of 1,129 from holding Edwards Lifesciences Corp or generate 15.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 1.61% |
| Values | Daily Returns |
Star Equity Holdings vs. Edwards Lifesciences Corp
Performance |
| Timeline |
| Star Equity Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Edwards Lifesciences Corp |
Star Equity and Edwards Lifesciences Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Star Equity and Edwards Lifesciences
The main advantage of trading using opposite Star Equity and Edwards Lifesciences positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Star Equity position performs unexpectedly, Edwards Lifesciences 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 Edwards Lifesciences will offset losses from the drop in Edwards Lifesciences' long position.| Star Equity vs. GameStop Corp | Star Equity vs. Delek Drilling | Star Equity vs. Orbit Garant Drilling | Star Equity vs. Diamond Offshore Drilling |
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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 Stocks Directory module to find actively traded stocks across global markets.
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