Correlation Between Avinger and Wearable Health
Can any of the company-specific risk be diversified away by investing in both Avinger and Wearable Health 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 Avinger and Wearable Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Avinger and Wearable Health Solutions, you can compare the effects of market volatilities on Avinger and Wearable Health 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 Avinger with a short position of Wearable Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Avinger and Wearable Health.
Diversification Opportunities for Avinger and Wearable Health
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Avinger and Wearable is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Avinger and Wearable Health Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wearable Health Solutions and Avinger 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 Avinger are associated (or correlated) with Wearable Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wearable Health Solutions has no effect on the direction of Avinger i.e., Avinger and Wearable Health go up and down completely randomly.
Pair Corralation between Avinger and Wearable Health
Given the investment horizon of 90 days Avinger is expected to under-perform the Wearable Health. But the stock apears to be less risky and, when comparing its historical volatility, Avinger is 2.29 times less risky than Wearable Health. The stock trades about -0.1 of its potential returns per unit of risk. The Wearable Health Solutions is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 0.07 in Wearable Health Solutions on September 1, 2024 and sell it today you would lose (0.06) from holding Wearable Health Solutions or give up 85.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.47% |
| Values | Daily Returns |
Avinger vs. Wearable Health Solutions
Performance |
| Timeline |
| Avinger |
| Wearable Health Solutions |
Avinger and Wearable Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Avinger and Wearable Health
The main advantage of trading using opposite Avinger and Wearable Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Avinger position performs unexpectedly, Wearable Health 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 Wearable Health will offset losses from the drop in Wearable Health's long position.| Avinger vs. GlucoTrack | Avinger vs. Nexgel Inc | Avinger vs. Sharps Technology | Avinger vs. Innovative Eyewear |
| Wearable Health vs. Sysmex Corp | Wearable Health vs. Coloplast AS | Wearable Health vs. Essilor International SA | Wearable Health vs. Coloplast A |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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