Correlation Between Bluejay Diagnostics and CONMED
Can any of the company-specific risk be diversified away by investing in both Bluejay Diagnostics and CONMED 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 Bluejay Diagnostics and CONMED into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bluejay Diagnostics and CONMED, you can compare the effects of market volatilities on Bluejay Diagnostics and CONMED 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 Bluejay Diagnostics with a short position of CONMED. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bluejay Diagnostics and CONMED.
Diversification Opportunities for Bluejay Diagnostics and CONMED
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Bluejay and CONMED is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Bluejay Diagnostics and CONMED in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CONMED and Bluejay Diagnostics 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 Bluejay Diagnostics are associated (or correlated) with CONMED. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CONMED has no effect on the direction of Bluejay Diagnostics i.e., Bluejay Diagnostics and CONMED go up and down completely randomly.
Pair Corralation between Bluejay Diagnostics and CONMED
Given the investment horizon of 90 days Bluejay Diagnostics is expected to generate 1.93 times less return on investment than CONMED. In addition to that, Bluejay Diagnostics is 7.83 times more volatile than CONMED. It trades about 0.01 of its total potential returns per unit of risk. CONMED is currently generating about 0.21 per unit of volatility. If you would invest 6,468 in CONMED on August 30, 2024 and sell it today you would earn a total of 848.00 from holding CONMED or generate 13.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Bluejay Diagnostics vs. CONMED
Performance |
| Timeline |
| Bluejay Diagnostics |
| CONMED |
Bluejay Diagnostics and CONMED Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bluejay Diagnostics and CONMED
The main advantage of trading using opposite Bluejay Diagnostics and CONMED positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bluejay Diagnostics position performs unexpectedly, CONMED 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 CONMED will offset losses from the drop in CONMED's long position.| Bluejay Diagnostics vs. Bone Biologics Corp | Bluejay Diagnostics vs. Nuwellis | Bluejay Diagnostics vs. Heart Test Laboratories | Bluejay Diagnostics vs. Tivic Health Systems |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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