Correlation Between Artivion and Guided Therapeutics
Can any of the company-specific risk be diversified away by investing in both Artivion and Guided Therapeutics 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 Artivion and Guided Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Artivion and Guided Therapeutics, you can compare the effects of market volatilities on Artivion and Guided Therapeutics 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 Artivion with a short position of Guided Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Artivion and Guided Therapeutics.
Diversification Opportunities for Artivion and Guided Therapeutics
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Artivion and Guided is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Artivion and Guided Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guided Therapeutics and Artivion 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 Artivion are associated (or correlated) with Guided Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guided Therapeutics has no effect on the direction of Artivion i.e., Artivion and Guided Therapeutics go up and down completely randomly.
Pair Corralation between Artivion and Guided Therapeutics
Given the investment horizon of 90 days Artivion is expected to generate 0.15 times more return on investment than Guided Therapeutics. However, Artivion is 6.76 times less risky than Guided Therapeutics. It trades about 0.1 of its potential returns per unit of risk. Guided Therapeutics is currently generating about 0.01 per unit of risk. If you would invest 2,887 in Artivion on September 12, 2024 and sell it today you would earn a total of 96.00 from holding Artivion or generate 3.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Artivion vs. Guided Therapeutics
Performance |
| Timeline |
| Artivion |
| Guided Therapeutics |
Artivion and Guided Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Artivion and Guided Therapeutics
The main advantage of trading using opposite Artivion and Guided Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Artivion position performs unexpectedly, Guided Therapeutics 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 Guided Therapeutics will offset losses from the drop in Guided Therapeutics' long position.| Artivion vs. Anika Therapeutics | Artivion vs. Sight Sciences | Artivion vs. Orthofix Medical | Artivion vs. Avanos Medical |
| Guided Therapeutics vs. Nephros | Guided Therapeutics vs. Intelgenx Technologs | Guided Therapeutics vs. SANUWAVE Health | Guided Therapeutics vs. Spectrascience New |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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