Correlation Between Pure Storage and Apyx Medical
Can any of the company-specific risk be diversified away by investing in both Pure Storage 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 Pure Storage and Apyx Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pure Storage and Apyx Medical Corp, you can compare the effects of market volatilities on Pure Storage 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 Pure Storage with a short position of Apyx Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pure Storage and Apyx Medical.
Diversification Opportunities for Pure Storage and Apyx Medical
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Pure and Apyx is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Pure Storage 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 Pure Storage 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 Pure Storage 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 Pure Storage i.e., Pure Storage and Apyx Medical go up and down completely randomly.
Pair Corralation between Pure Storage and Apyx Medical
Assuming the 90 days horizon Pure Storage is expected to generate 0.63 times more return on investment than Apyx Medical. However, Pure Storage is 1.59 times less risky than Apyx Medical. It trades about 0.07 of its potential returns per unit of risk. Apyx Medical Corp is currently generating about 0.0 per unit of risk. If you would invest 3,849 in Pure Storage on October 20, 2024 and sell it today you would earn a total of 2,283 from holding Pure Storage or generate 59.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pure Storage vs. Apyx Medical Corp
Performance |
| Timeline |
| Pure Storage |
| Apyx Medical Corp |
Pure Storage and Apyx Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pure Storage and Apyx Medical
The main advantage of trading using opposite Pure Storage and Apyx Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pure Storage 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.| Pure Storage vs. OURGAME INTHOLDL 00005 | Pure Storage vs. NAKED WINES PLC | Pure Storage vs. VIVA WINE GROUP | Pure Storage vs. GAMES OPERATORS SA |
| Apyx Medical vs. USWE SPORTS AB | Apyx Medical vs. PLAY2CHILL SA ZY | Apyx Medical vs. Pure Storage | Apyx Medical vs. NTT DATA |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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