Correlation Between Apyx Medical and Neogen

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Can any of the company-specific risk be diversified away by investing in both Apyx Medical and Neogen 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 Neogen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apyx Medical and Neogen, you can compare the effects of market volatilities on Apyx Medical and Neogen 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 Neogen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apyx Medical and Neogen.

Diversification Opportunities for Apyx Medical and Neogen

-0.55
  Correlation Coefficient

Excellent diversification

The 3 months correlation between Apyx and Neogen is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Apyx Medical and Neogen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Neogen 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 Neogen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Neogen has no effect on the direction of Apyx Medical i.e., Apyx Medical and Neogen go up and down completely randomly.

Pair Corralation between Apyx Medical and Neogen

Given the investment horizon of 90 days Apyx Medical is expected to generate 2.34 times more return on investment than Neogen. However, Apyx Medical is 2.34 times more volatile than Neogen. It trades about 0.02 of its potential returns per unit of risk. Neogen is currently generating about 0.0 per unit of risk. If you would invest  234.00  in Apyx Medical on September 20, 2024 and sell it today you would lose (76.00) from holding Apyx Medical or give up 32.48% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Apyx Medical  vs.  Neogen

 Performance 
       Timeline  
Apyx Medical 

Risk-Adjusted Performance

6 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Apyx Medical are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unsteady basic indicators, Apyx Medical showed solid returns over the last few months and may actually be approaching a breakup point.
Neogen 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Neogen has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unfluctuating performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Apyx Medical and Neogen Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Apyx Medical and Neogen

The main advantage of trading using opposite Apyx Medical and Neogen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apyx Medical position performs unexpectedly, Neogen 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 Neogen will offset losses from the drop in Neogen's long position.
The idea behind Apyx Medical and Neogen pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Commodity Directory module to find actively traded commodities issued by global exchanges.

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