Correlation Between USWE SPORTS and Apyx Medical
Can any of the company-specific risk be diversified away by investing in both USWE SPORTS 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 USWE SPORTS and Apyx Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between USWE SPORTS AB and Apyx Medical Corp, you can compare the effects of market volatilities on USWE SPORTS 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 USWE SPORTS with a short position of Apyx Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of USWE SPORTS and Apyx Medical.
Diversification Opportunities for USWE SPORTS and Apyx Medical
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between USWE and Apyx is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding USWE SPORTS AB 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 USWE SPORTS 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 USWE SPORTS AB 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 USWE SPORTS i.e., USWE SPORTS and Apyx Medical go up and down completely randomly.
Pair Corralation between USWE SPORTS and Apyx Medical
Assuming the 90 days horizon USWE SPORTS AB is expected to under-perform the Apyx Medical. But the stock apears to be less risky and, when comparing its historical volatility, USWE SPORTS AB is 1.59 times less risky than Apyx Medical. The stock trades about -0.02 of its potential returns per unit of risk. The Apyx Medical Corp is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 268.00 in Apyx Medical Corp on October 20, 2024 and sell it today you would lose (139.00) from holding Apyx Medical Corp or give up 51.87% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
USWE SPORTS AB vs. Apyx Medical Corp
Performance |
| Timeline |
| USWE SPORTS AB |
| Apyx Medical Corp |
USWE SPORTS and Apyx Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with USWE SPORTS and Apyx Medical
The main advantage of trading using opposite USWE SPORTS and Apyx Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if USWE SPORTS 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.| USWE SPORTS vs. Cincinnati Financial Corp | USWE SPORTS vs. UNIQA INSURANCE GR | USWE SPORTS vs. STORE ELECTRONIC | USWE SPORTS vs. LPKF Laser Electronics |
| 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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