Correlation Between Hologic and ResMed
Can any of the company-specific risk be diversified away by investing in both Hologic and ResMed 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 Hologic and ResMed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hologic and ResMed Inc, you can compare the effects of market volatilities on Hologic and ResMed 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 Hologic with a short position of ResMed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hologic and ResMed.
Diversification Opportunities for Hologic and ResMed
Modest diversification
The 3 months correlation between Hologic and ResMed is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Hologic and ResMed Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ResMed Inc and Hologic 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 Hologic are associated (or correlated) with ResMed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ResMed Inc has no effect on the direction of Hologic i.e., Hologic and ResMed go up and down completely randomly.
Pair Corralation between Hologic and ResMed
Given the investment horizon of 90 days Hologic is expected to under-perform the ResMed. But the stock apears to be less risky and, when comparing its historical volatility, Hologic is 1.54 times less risky than ResMed. The stock trades about -0.02 of its potential returns per unit of risk. The ResMed Inc is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 21,242 in ResMed Inc on March 30, 2025 and sell it today you would earn a total of 4,274 from holding ResMed Inc or generate 20.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hologic vs. ResMed Inc
Performance |
| Timeline |
| Hologic |
| ResMed Inc |
Hologic and ResMed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hologic and ResMed
The main advantage of trading using opposite Hologic and ResMed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hologic position performs unexpectedly, ResMed 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 ResMed will offset losses from the drop in ResMed's long position.| Hologic vs. Haemonetics | Hologic vs. ICU Medical | Hologic vs. Envista Holdings Corp | Hologic vs. The Cooper Companies, |
| ResMed vs. Teleflex Incorporated | ResMed vs. West Pharmaceutical Services | ResMed vs. Alcon AG | ResMed vs. ICU Medical |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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