Correlation Between Venus Concept and Edwards Lifesciences

Can any of the company-specific risk be diversified away by investing in both Venus Concept 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 Venus Concept and Edwards Lifesciences into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Venus Concept and Edwards Lifesciences Corp, you can compare the effects of market volatilities on Venus Concept 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 Venus Concept with a short position of Edwards Lifesciences. Check out your portfolio center. Please also check ongoing floating volatility patterns of Venus Concept and Edwards Lifesciences.

Diversification Opportunities for Venus Concept and Edwards Lifesciences

0.18

Correlation Coefficient

Venus Concept  Edwards Lifesciences

Average diversification

The 3 months correlation between Venus and Edwards is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Venus Concept 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 Venus Concept 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 Venus Concept 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 Venus Concept i.e., Venus Concept and Edwards Lifesciences go up and down completely randomly.

Pair Corralation between Venus Concept and Edwards Lifesciences

Given the investment horizon of 90 days Venus Concept is expected to generate 4.86 times more return on investment than Edwards Lifesciences. However, Venus Concept is 4.86 times more volatile than Edwards Lifesciences Corp. It trades about 0.04 of its potential returns per unit of risk. Edwards Lifesciences Corp is currently generating about 0.09 per unit of risk. If you would invest  234.00  in Venus Concept on May 7, 2025 and sell it today you would earn a total of  14.00  from holding Venus Concept or generate 5.98% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Venus Concept  vs.  Edwards Lifesciences Corp

Venus Concept

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Venus Concept are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Venus Concept displayed solid returns over the last few months and may actually be approaching a breakup point.

Edwards Lifesciences Corp

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Edwards Lifesciences Corp are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain basic indicators, Edwards Lifesciences may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Venus Concept and Edwards Lifesciences

The main advantage of trading using opposite Venus Concept and Edwards Lifesciences positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Venus Concept 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 Venus Concept 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.

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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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.