Correlation Between Apyx Medical and Aurora Spine
Can any of the company-specific risk be diversified away by investing in both Apyx Medical and Aurora Spine 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 Apyx Medical and Aurora Spine into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apyx Medical and Aurora Spine, you can compare the effects of market volatilities on Apyx Medical and Aurora Spine 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 Apyx Medical with a short position of Aurora Spine. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apyx Medical and Aurora Spine.
Diversification Opportunities for Apyx Medical and Aurora Spine
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Apyx and Aurora is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Apyx Medical and Aurora Spine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aurora Spine and Apyx Medical 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 Apyx Medical are associated (or correlated) with Aurora Spine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aurora Spine has no effect on the direction of Apyx Medical i.e., Apyx Medical and Aurora Spine go up and down completely randomly.
Pair Corralation between Apyx Medical and Aurora Spine
Given the investment horizon of 90 days Apyx Medical is expected to generate 2.9 times more return on investment than Aurora Spine. However, Apyx Medical is 2.9 times more volatile than Aurora Spine. It trades about 0.24 of its potential returns per unit of risk. Aurora Spine is currently generating about 0.01 per unit of risk. If you would invest 117.00 in Apyx Medical on September 1, 2024 and sell it today you would earn a total of 44.00 from holding Apyx Medical or generate 37.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Apyx Medical vs. Aurora Spine
Performance |
| Timeline |
| Apyx Medical |
| Aurora Spine |
Apyx Medical and Aurora Spine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apyx Medical and Aurora Spine
The main advantage of trading using opposite Apyx Medical and Aurora Spine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apyx Medical position performs unexpectedly, Aurora Spine 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 Aurora Spine will offset losses from the drop in Aurora Spine's long position.| Apyx Medical vs. Neuropace | Apyx Medical vs. Inogen Inc | Apyx Medical vs. SurModics | Apyx Medical vs. Pulmonx Corp |
| Aurora Spine vs. Armm Inc | Aurora Spine vs. Cellink AB | Aurora Spine vs. Bone Biologics Corp | Aurora Spine vs. BICO Group AB |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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