Correlation Between Second Sight and Medtronic PLC
Can any of the company-specific risk be diversified away by investing in both Second Sight and Medtronic PLC 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 Medtronic PLC 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 Medtronic PLC, you can compare the effects of market volatilities on Second Sight and Medtronic PLC 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 Medtronic PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Second Sight and Medtronic PLC.
Diversification Opportunities for Second Sight and Medtronic PLC
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Second and Medtronic is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Second Sight Medical and Medtronic PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Medtronic PLC 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 Medtronic PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Medtronic PLC has no effect on the direction of Second Sight i.e., Second Sight and Medtronic PLC go up and down completely randomly.
Pair Corralation between Second Sight and Medtronic PLC
If you would invest 8,268 in Medtronic PLC on December 30, 2023 and sell it today you would earn a total of 447.00 from holding Medtronic PLC or generate 5.41% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 4.55% |
Values | Daily Returns |
Second Sight Medical vs. Medtronic PLC
Performance |
Timeline |
Second Sight Medical |
Risk-Adjusted Performance
0 of 100
Low | High |
Very Weak
Medtronic PLC |
Second Sight and Medtronic PLC Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Second Sight and Medtronic PLC
The main advantage of trading using opposite Second Sight and Medtronic PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Second Sight position performs unexpectedly, Medtronic PLC 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 Medtronic PLC will offset losses from the drop in Medtronic PLC's long position.Second Sight vs. Freedom Internet Group | Second Sight vs. Vestis | Second Sight vs. Anterix | Second Sight vs. Mitsubishi UFJ Lease |
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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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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