Correlation Between Apyx Medical and Sight Sciences
Can any of the company-specific risk be diversified away by investing in both Apyx Medical and Sight Sciences 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 Sight Sciences into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apyx Medical and Sight Sciences, you can compare the effects of market volatilities on Apyx Medical and Sight Sciences 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 Sight Sciences. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apyx Medical and Sight Sciences.
Diversification Opportunities for Apyx Medical and Sight Sciences
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Apyx and Sight is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Apyx Medical and Sight Sciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sight Sciences 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 Sight Sciences. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sight Sciences has no effect on the direction of Apyx Medical i.e., Apyx Medical and Sight Sciences go up and down completely randomly.
Pair Corralation between Apyx Medical and Sight Sciences
Given the investment horizon of 90 days Apyx Medical is expected to under-perform the Sight Sciences. In addition to that, Apyx Medical is 1.29 times more volatile than Sight Sciences. It trades about -0.01 of its total potential returns per unit of risk. Sight Sciences is currently generating about 0.01 per unit of volatility. If you would invest 424.00 in Sight Sciences on August 28, 2024 and sell it today you would lose (26.00) from holding Sight Sciences or give up 6.13% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Apyx Medical vs. Sight Sciences
Performance |
| Timeline |
| Apyx Medical |
| Sight Sciences |
Apyx Medical and Sight Sciences Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apyx Medical and Sight Sciences
The main advantage of trading using opposite Apyx Medical and Sight Sciences positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apyx Medical position performs unexpectedly, Sight Sciences 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 Sight Sciences will offset losses from the drop in Sight Sciences' long position.| Apyx Medical vs. Heartbeam | Apyx Medical vs. EUDA Health Holdings | Apyx Medical vs. Nutex Health | Apyx Medical vs. Healthcare Triangle |
| Sight Sciences vs. Si Bone | Sight Sciences vs. Rapid Micro Biosystems | Sight Sciences vs. Tactile Systems Technology | Sight Sciences 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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