Correlation Between Glaukos Corp and Globus Medical
Can any of the company-specific risk be diversified away by investing in both Glaukos Corp and Globus Medical 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 Glaukos Corp and Globus Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Glaukos Corp and Globus Medical, you can compare the effects of market volatilities on Glaukos Corp and Globus Medical 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 Glaukos Corp with a short position of Globus Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Glaukos Corp and Globus Medical.
Diversification Opportunities for Glaukos Corp and Globus Medical
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Glaukos and Globus is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Glaukos Corp and Globus Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Globus Medical and Glaukos Corp 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 Glaukos Corp are associated (or correlated) with Globus Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Globus Medical has no effect on the direction of Glaukos Corp i.e., Glaukos Corp and Globus Medical go up and down completely randomly.
Pair Corralation between Glaukos Corp and Globus Medical
Given the investment horizon of 90 days Glaukos Corp is expected to generate 1.61 times more return on investment than Globus Medical. However, Glaukos Corp is 1.61 times more volatile than Globus Medical. It trades about 0.23 of its potential returns per unit of risk. Globus Medical is currently generating about -0.09 per unit of risk. If you would invest 8,948 in Glaukos Corp on February 2, 2024 and sell it today you would earn a total of 943.00 from holding Glaukos Corp or generate 10.54% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Glaukos Corp vs. Globus Medical
Performance |
Timeline |
Glaukos Corp |
Globus Medical |
Glaukos Corp and Globus Medical Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Glaukos Corp and Globus Medical
The main advantage of trading using opposite Glaukos Corp and Globus Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Glaukos Corp position performs unexpectedly, Globus Medical 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 Globus Medical will offset losses from the drop in Globus Medical's long position.Glaukos Corp vs. Senseonics Holdings | Glaukos Corp vs. Bionano Genomics | Glaukos Corp vs. Jaguar Animal Health | Glaukos Corp vs. Foresight Autonomous Holdings |
Globus Medical vs. Senseonics Holdings | Globus Medical vs. Bionano Genomics | Globus Medical vs. Jaguar Animal Health | Globus Medical vs. Foresight Autonomous Holdings |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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