Correlation Between Modular Medical and SurModics
Can any of the company-specific risk be diversified away by investing in both Modular Medical and SurModics 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 Modular Medical and SurModics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Modular Medical and SurModics, you can compare the effects of market volatilities on Modular Medical and SurModics 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 Modular Medical with a short position of SurModics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Modular Medical and SurModics.
Diversification Opportunities for Modular Medical and SurModics
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Modular and SurModics is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Modular Medical and SurModics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SurModics and Modular Medical 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 Modular Medical are associated (or correlated) with SurModics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SurModics has no effect on the direction of Modular Medical i.e., Modular Medical and SurModics go up and down completely randomly.
Pair Corralation between Modular Medical and SurModics
Given the investment horizon of 90 days Modular Medical is expected to under-perform the SurModics. In addition to that, Modular Medical is 2.37 times more volatile than SurModics. It trades about -0.11 of its total potential returns per unit of risk. SurModics is currently generating about 0.04 per unit of volatility. If you would invest 3,110 in SurModics on April 26, 2025 and sell it today you would earn a total of 95.00 from holding SurModics or generate 3.05% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Modular Medical vs. SurModics
Performance |
Timeline |
Modular Medical |
SurModics |
Modular Medical and SurModics Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Modular Medical and SurModics
The main advantage of trading using opposite Modular Medical and SurModics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Modular Medical position performs unexpectedly, SurModics 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 SurModics will offset losses from the drop in SurModics' long position.Modular Medical vs. Bone Biologics Corp | Modular Medical vs. Bluejay Diagnostics | Modular Medical vs. LENSAR Inc | Modular Medical vs. Movano Inc |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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