Correlation Between Apyx Medical and Si Bone
Can any of the company-specific risk be diversified away by investing in both Apyx Medical and Si Bone 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 Si Bone into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apyx Medical and Si Bone, you can compare the effects of market volatilities on Apyx Medical and Si Bone 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 Si Bone. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apyx Medical and Si Bone.
Diversification Opportunities for Apyx Medical and Si Bone
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Apyx and SIBN is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Apyx Medical and Si Bone in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Si Bone 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 Si Bone. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Si Bone has no effect on the direction of Apyx Medical i.e., Apyx Medical and Si Bone go up and down completely randomly.
Pair Corralation between Apyx Medical and Si Bone
Given the investment horizon of 90 days Apyx Medical is expected to under-perform the Si Bone. In addition to that, Apyx Medical is 1.64 times more volatile than Si Bone. It trades about -0.01 of its total potential returns per unit of risk. Si Bone is currently generating about -0.01 per unit of volatility. If you would invest 2,056 in Si Bone on November 3, 2024 and sell it today you would lose (380.00) from holding Si Bone or give up 18.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Apyx Medical vs. Si Bone
Performance |
| Timeline |
| Apyx Medical |
| Si Bone |
Apyx Medical and Si Bone Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apyx Medical and Si Bone
The main advantage of trading using opposite Apyx Medical and Si Bone positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apyx Medical position performs unexpectedly, Si Bone 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 Si Bone will offset losses from the drop in Si Bone'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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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