Correlation Between ALR Technologies and CONMED
Can any of the company-specific risk be diversified away by investing in both ALR Technologies and CONMED 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 ALR Technologies and CONMED into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ALR Technologies and CONMED, you can compare the effects of market volatilities on ALR Technologies and CONMED 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 ALR Technologies with a short position of CONMED. Check out your portfolio center. Please also check ongoing floating volatility patterns of ALR Technologies and CONMED.
Diversification Opportunities for ALR Technologies and CONMED
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ALR and CONMED is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding ALR Technologies and CONMED in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CONMED and ALR Technologies 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 ALR Technologies are associated (or correlated) with CONMED. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CONMED has no effect on the direction of ALR Technologies i.e., ALR Technologies and CONMED go up and down completely randomly.
Pair Corralation between ALR Technologies and CONMED
Assuming the 90 days horizon ALR Technologies is expected to under-perform the CONMED. In addition to that, ALR Technologies is 5.44 times more volatile than CONMED. It trades about -0.11 of its total potential returns per unit of risk. CONMED is currently generating about 0.1 per unit of volatility. If you would invest 7,047 in CONMED on September 3, 2024 and sell it today you would earn a total of 357.00 from holding CONMED or generate 5.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ALR Technologies vs. CONMED
Performance |
| Timeline |
| ALR Technologies |
| CONMED |
ALR Technologies and CONMED Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ALR Technologies and CONMED
The main advantage of trading using opposite ALR Technologies and CONMED positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ALR Technologies position performs unexpectedly, CONMED 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 CONMED will offset losses from the drop in CONMED's long position.| ALR Technologies vs. Artivion | ALR Technologies vs. Anika Therapeutics | ALR Technologies vs. Sight Sciences | ALR Technologies vs. Orthofix Medical |
| CONMED vs. Tandem Diabetes Care | CONMED vs. Inspire Medical Systems | CONMED vs. Penumbra | CONMED vs. Insulet |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |