Correlation Analysis Between Medtronic Plc and ECHO THERAPEUTICS

Analyzing existing cross correlation between Medtronic plc and ECHO THERAPEUTICS INC. You can compare the effects of market volatilities on Medtronic Plc and ECHO THERAPEUTICS 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 Medtronic Plc with a short position of ECHO THERAPEUTICS. See also your portfolio center. Please also check ongoing floating volatility patterns of Medtronic Plc and ECHO THERAPEUTICS.
Horizon     30 Days    Login   to change
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Comparative Performance

Medtronic plc  
1212

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Medtronic plc are ranked lower than 12 (%) of all global equities and portfolios over the last 30 days. In spite of comparatively unfluctuating essential indicators, Medtronic Plc may actually be approaching a critical reversion point that can send shares even higher in February 2020.
ECHO THERAPEUTICS INC  
1111

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in ECHO THERAPEUTICS INC are ranked lower than 11 (%) of all global equities and portfolios over the last 30 days. In spite of rather unfluctuating fundamental drivers, ECHO THERAPEUTICS exhibited solid returns over the last few months and may actually be approaching a breakup point.

Medtronic Plc and ECHO THERAPEUTICS Volatility Contrast

 Predicted Return Density 
    
  Returns 

Medtronic plc  vs.  ECHO THERAPEUTICS INC

 Performance (%) 
    
  Timeline 

Pair Volatility

Considering 30-days investment horizon, Medtronic Plc is expected to generate 68.99 times less return on investment than ECHO THERAPEUTICS. But when comparing it to its historical volatility, Medtronic plc is 78.08 times less risky than ECHO THERAPEUTICS. It trades about 0.19 of its potential returns per unit of risk. ECHO THERAPEUTICS INC is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest  1.50  in ECHO THERAPEUTICS INC on December 26, 2019 and sell it today you would lose (1.17)  from holding ECHO THERAPEUTICS INC or give up 78.0% of portfolio value over 30 days.

Pair Corralation between Medtronic Plc and ECHO THERAPEUTICS

-0.31
Time Period3 Months [change]
DirectionNegative 
StrengthInsignificant
Accuracy95.31%
ValuesDaily Returns

Diversification Opportunities for Medtronic Plc and ECHO THERAPEUTICS

Medtronic plc diversification synergy

Very good diversification

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