Correlation Between Second Sight and Edwards Lifesciences
Can any of the company-specific risk be diversified away by investing in both Second Sight 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 Second Sight and Edwards Lifesciences into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Second Sight Medical and Edwards Lifesciences Corp, you can compare the effects of market volatilities on Second Sight 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 Second Sight with a short position of Edwards Lifesciences. Check out your portfolio center. Please also check ongoing floating volatility patterns of Second Sight and Edwards Lifesciences.
Diversification Opportunities for Second Sight and Edwards Lifesciences
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Second and Edwards is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Second Sight Medical 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 Second Sight 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 Second Sight Medical 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 Second Sight i.e., Second Sight and Edwards Lifesciences go up and down completely randomly.
Pair Corralation between Second Sight and Edwards Lifesciences
If you would invest 414.00 in Second Sight Medical on January 26, 2024 and sell it today you would earn a total of 0.00 from holding Second Sight Medical or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Second Sight Medical vs. Edwards Lifesciences Corp
Performance |
| Timeline |
| Second Sight Medical |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Edwards Lifesciences Corp |
Second Sight and Edwards Lifesciences Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Second Sight and Edwards Lifesciences
The main advantage of trading using opposite Second Sight and Edwards Lifesciences positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Second Sight 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.| Second Sight vs. Montauk Renewables | Second Sight vs. Topbuild Corp | Second Sight vs. ChampionX | Second Sight vs. HydroGraph Clean Power |
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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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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