Correlation Between Ingen Technologies and Edwards Lifesciences
Can any of the company-specific risk be diversified away by investing in both Ingen Technologies 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 Ingen Technologies and Edwards Lifesciences into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ingen Technologies and Edwards Lifesciences Corp, you can compare the effects of market volatilities on Ingen Technologies 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 Ingen Technologies with a short position of Edwards Lifesciences. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ingen Technologies and Edwards Lifesciences.
Diversification Opportunities for Ingen Technologies and Edwards Lifesciences
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Ingen and Edwards is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Ingen Technologies 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 Ingen Technologies 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 Ingen Technologies 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 Ingen Technologies i.e., Ingen Technologies and Edwards Lifesciences go up and down completely randomly.
Pair Corralation between Ingen Technologies and Edwards Lifesciences
If you would invest 0.00 in Ingen Technologies on January 20, 2024 and sell it today you would earn a total of 0.00 from holding Ingen Technologies or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Ingen Technologies vs. Edwards Lifesciences Corp
Performance |
| Timeline |
| Ingen Technologies |
| Edwards Lifesciences Corp |
Ingen Technologies and Edwards Lifesciences Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ingen Technologies and Edwards Lifesciences
The main advantage of trading using opposite Ingen Technologies and Edwards Lifesciences positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ingen Technologies 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.The idea behind Ingen Technologies and Edwards Lifesciences Corp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Edwards Lifesciences vs. Agilent Technologies | Edwards Lifesciences vs. Illumina | Edwards Lifesciences vs. Waters | Edwards Lifesciences vs. Thermo Fisher Scientific |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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