Correlation Between Prosafe SE and Apyx Medical
Can any of the company-specific risk be diversified away by investing in both Prosafe SE and Apyx Medical 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 Prosafe SE and Apyx Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Prosafe SE and Apyx Medical Corp, you can compare the effects of market volatilities on Prosafe SE and Apyx Medical 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 Prosafe SE with a short position of Apyx Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Prosafe SE and Apyx Medical.
Diversification Opportunities for Prosafe SE and Apyx Medical
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Prosafe and Apyx is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Prosafe SE and Apyx Medical Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apyx Medical Corp and Prosafe SE 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 Prosafe SE are associated (or correlated) with Apyx Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apyx Medical Corp has no effect on the direction of Prosafe SE i.e., Prosafe SE and Apyx Medical go up and down completely randomly.
Pair Corralation between Prosafe SE and Apyx Medical
Assuming the 90 days horizon Prosafe SE is expected to under-perform the Apyx Medical. But the stock apears to be less risky and, when comparing its historical volatility, Prosafe SE is 1.03 times less risky than Apyx Medical. The stock trades about -0.28 of its potential returns per unit of risk. The Apyx Medical Corp is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 149.00 in Apyx Medical Corp on September 1, 2024 and sell it today you would earn a total of 16.00 from holding Apyx Medical Corp or generate 10.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.24% |
| Values | Daily Returns |
Prosafe SE vs. Apyx Medical Corp
Performance |
| Timeline |
| Prosafe SE |
| Apyx Medical Corp |
Prosafe SE and Apyx Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Prosafe SE and Apyx Medical
The main advantage of trading using opposite Prosafe SE and Apyx Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Prosafe SE position performs unexpectedly, Apyx Medical 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 Apyx Medical will offset losses from the drop in Apyx Medical's long position.| Prosafe SE vs. Tenaris SA | Prosafe SE vs. Superior Plus Corp | Prosafe SE vs. NMI Holdings | Prosafe SE vs. Origin Agritech |
| Apyx Medical vs. Apple Inc | Apyx Medical vs. Apple Inc | Apyx Medical vs. Apple Inc | Apyx Medical vs. Apple 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |