Correlation Between Edwards Lifesciences and Milestone Scientific
Can any of the company-specific risk be diversified away by investing in both Edwards Lifesciences and Milestone Scientific 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 Edwards Lifesciences and Milestone Scientific into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Edwards Lifesciences Corp and Milestone Scientific, you can compare the effects of market volatilities on Edwards Lifesciences and Milestone Scientific 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 Edwards Lifesciences with a short position of Milestone Scientific. Check out your portfolio center. Please also check ongoing floating volatility patterns of Edwards Lifesciences and Milestone Scientific.
Diversification Opportunities for Edwards Lifesciences and Milestone Scientific
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Edwards and Milestone is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Edwards Lifesciences Corp and Milestone Scientific in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Milestone Scientific and Edwards Lifesciences 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 Edwards Lifesciences Corp are associated (or correlated) with Milestone Scientific. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Milestone Scientific has no effect on the direction of Edwards Lifesciences i.e., Edwards Lifesciences and Milestone Scientific go up and down completely randomly.
Pair Corralation between Edwards Lifesciences and Milestone Scientific
Allowing for the 90-day total investment horizon Edwards Lifesciences Corp is expected to generate 0.37 times more return on investment than Milestone Scientific. However, Edwards Lifesciences Corp is 2.7 times less risky than Milestone Scientific. It trades about 0.07 of its potential returns per unit of risk. Milestone Scientific is currently generating about -0.05 per unit of risk. If you would invest 7,248 in Edwards Lifesciences Corp on March 29, 2025 and sell it today you would earn a total of 467.00 from holding Edwards Lifesciences Corp or generate 6.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Edwards Lifesciences Corp vs. Milestone Scientific
Performance |
| Timeline |
| Edwards Lifesciences Corp |
| Milestone Scientific |
Edwards Lifesciences and Milestone Scientific Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Edwards Lifesciences and Milestone Scientific
The main advantage of trading using opposite Edwards Lifesciences and Milestone Scientific positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Edwards Lifesciences position performs unexpectedly, Milestone Scientific 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 Milestone Scientific will offset losses from the drop in Milestone Scientific's long position.| Edwards Lifesciences vs. Medtronic PLC | Edwards Lifesciences vs. Abbott Laboratories | Edwards Lifesciences vs. Boston Scientific Corp | Edwards Lifesciences vs. Zimmer Biomet Holdings |
| Milestone Scientific vs. InfuSystems Holdings | Milestone Scientific vs. STRATA Skin Sciences | Milestone Scientific vs. Retractable Technologies | Milestone Scientific vs. PAVmed 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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