Correlation Between Apyx Medical and Sonova Holding
Can any of the company-specific risk be diversified away by investing in both Apyx Medical and Sonova Holding 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 Sonova Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apyx Medical and Sonova Holding AG, you can compare the effects of market volatilities on Apyx Medical and Sonova Holding 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 Sonova Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apyx Medical and Sonova Holding.
Diversification Opportunities for Apyx Medical and Sonova Holding
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Apyx and Sonova is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Apyx Medical and Sonova Holding AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sonova Holding AG 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 Sonova Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sonova Holding AG has no effect on the direction of Apyx Medical i.e., Apyx Medical and Sonova Holding go up and down completely randomly.
Pair Corralation between Apyx Medical and Sonova Holding
Given the investment horizon of 90 days Apyx Medical is expected to generate 3.39 times more return on investment than Sonova Holding. However, Apyx Medical is 3.39 times more volatile than Sonova Holding AG. It trades about 0.02 of its potential returns per unit of risk. Sonova Holding AG is currently generating about 0.05 per unit of risk. If you would invest 165.00 in Apyx Medical on September 2, 2024 and sell it today you would lose (4.00) from holding Apyx Medical or give up 2.42% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Apyx Medical vs. Sonova Holding AG
Performance |
| Timeline |
| Apyx Medical |
| Sonova Holding AG |
Apyx Medical and Sonova Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apyx Medical and Sonova Holding
The main advantage of trading using opposite Apyx Medical and Sonova Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apyx Medical position performs unexpectedly, Sonova Holding 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 Sonova Holding will offset losses from the drop in Sonova Holding's long position.| Apyx Medical vs. Neuropace | Apyx Medical vs. Inogen Inc | Apyx Medical vs. SurModics | Apyx Medical vs. Pulmonx Corp |
| Sonova Holding vs. Medtronic PLC | Sonova Holding vs. CONMED | Sonova Holding vs. Glaukos Corp | Sonova Holding vs. Integer Holdings 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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