Correlation Between Apyx Medical and Danaher
Can any of the company-specific risk be diversified away by investing in both Apyx Medical and Danaher 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 Danaher into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apyx Medical and Danaher, you can compare the effects of market volatilities on Apyx Medical and Danaher 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 Danaher. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apyx Medical and Danaher.
Diversification Opportunities for Apyx Medical and Danaher
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Apyx and Danaher is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Apyx Medical and Danaher in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Danaher 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 Danaher. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Danaher has no effect on the direction of Apyx Medical i.e., Apyx Medical and Danaher go up and down completely randomly.
Pair Corralation between Apyx Medical and Danaher
Given the investment horizon of 90 days Apyx Medical is expected to generate 4.19 times less return on investment than Danaher. In addition to that, Apyx Medical is 4.13 times more volatile than Danaher. It trades about 0.0 of its total potential returns per unit of risk. Danaher is currently generating about 0.01 per unit of volatility. If you would invest 23,044 in Danaher on September 20, 2024 and sell it today you would earn a total of 309.00 from holding Danaher or generate 1.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Apyx Medical vs. Danaher
Performance |
| Timeline |
| Apyx Medical |
| Danaher |
Apyx Medical and Danaher Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apyx Medical and Danaher
The main advantage of trading using opposite Apyx Medical and Danaher positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apyx Medical position performs unexpectedly, Danaher 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 Danaher will offset losses from the drop in Danaher's long position.| Apyx Medical vs. Neuropace | Apyx Medical vs. Inogen Inc | Apyx Medical vs. SurModics | Apyx Medical vs. Pulmonx Corp |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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