Correlation Between Apyx Medical and Electromed
Can any of the company-specific risk be diversified away by investing in both Apyx Medical and Electromed 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 Electromed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apyx Medical and Electromed, you can compare the effects of market volatilities on Apyx Medical and Electromed 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 Electromed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apyx Medical and Electromed.
Diversification Opportunities for Apyx Medical and Electromed
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Apyx and Electromed is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Apyx Medical and Electromed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Electromed 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 Electromed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Electromed has no effect on the direction of Apyx Medical i.e., Apyx Medical and Electromed go up and down completely randomly.
Pair Corralation between Apyx Medical and Electromed
Given the investment horizon of 90 days Apyx Medical is expected to under-perform the Electromed. In addition to that, Apyx Medical is 1.63 times more volatile than Electromed. It trades about -0.01 of its total potential returns per unit of risk. Electromed is currently generating about 0.16 per unit of volatility. If you would invest 1,002 in Electromed on November 3, 2024 and sell it today you would earn a total of 2,438 from holding Electromed or generate 243.31% 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. Electromed
Performance |
| Timeline |
| Apyx Medical |
| Electromed |
Apyx Medical and Electromed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apyx Medical and Electromed
The main advantage of trading using opposite Apyx Medical and Electromed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apyx Medical position performs unexpectedly, Electromed 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 Electromed will offset losses from the drop in Electromed's long position.| Apyx Medical vs. Neuropace | Apyx Medical vs. Inogen Inc | Apyx Medical vs. SurModics | Apyx Medical vs. Pulmonx Corp |
| Electromed vs. Neuropace | Electromed vs. Orthopediatrics Corp | Electromed vs. SurModics | Electromed vs. Paragon 28 |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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