Correlation Between ADRIATIC METALS and Apyx Medical
Can any of the company-specific risk be diversified away by investing in both ADRIATIC METALS 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 ADRIATIC METALS and Apyx Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ADRIATIC METALS LS 013355 and Apyx Medical Corp, you can compare the effects of market volatilities on ADRIATIC METALS 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 ADRIATIC METALS with a short position of Apyx Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of ADRIATIC METALS and Apyx Medical.
Diversification Opportunities for ADRIATIC METALS and Apyx Medical
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between ADRIATIC and Apyx is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding ADRIATIC METALS LS 013355 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 ADRIATIC METALS 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 ADRIATIC METALS LS 013355 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 ADRIATIC METALS i.e., ADRIATIC METALS and Apyx Medical go up and down completely randomly.
Pair Corralation between ADRIATIC METALS and Apyx Medical
Assuming the 90 days trading horizon ADRIATIC METALS is expected to generate 18.89 times less return on investment than Apyx Medical. But when comparing it to its historical volatility, ADRIATIC METALS LS 013355 is 2.15 times less risky than Apyx Medical. It trades about 0.04 of its potential returns per unit of risk. Apyx Medical Corp is currently generating about 0.34 of returns per unit of risk over similar time horizon. If you would invest 105.00 in Apyx Medical Corp on September 1, 2024 and sell it today you would earn a total of 60.00 from holding Apyx Medical Corp or generate 57.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ADRIATIC METALS LS 013355 vs. Apyx Medical Corp
Performance |
| Timeline |
| ADRIATIC METALS LS |
| Apyx Medical Corp |
ADRIATIC METALS and Apyx Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ADRIATIC METALS and Apyx Medical
The main advantage of trading using opposite ADRIATIC METALS and Apyx Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ADRIATIC METALS 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.| ADRIATIC METALS vs. PUBLIC STORAGE PRFO | ADRIATIC METALS vs. BE Semiconductor Industries | ADRIATIC METALS vs. Datang International Power | ADRIATIC METALS vs. Elmos Semiconductor SE |
| 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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