Correlation Between Bluejay Diagnostics and Tenon Medical
Can any of the company-specific risk be diversified away by investing in both Bluejay Diagnostics and Tenon Medical 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 Tenon Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bluejay Diagnostics and Tenon Medical, you can compare the effects of market volatilities on Bluejay Diagnostics and Tenon Medical 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 Tenon Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bluejay Diagnostics and Tenon Medical.
Diversification Opportunities for Bluejay Diagnostics and Tenon Medical
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bluejay and Tenon is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Bluejay Diagnostics and Tenon Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tenon Medical 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 Tenon Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tenon Medical has no effect on the direction of Bluejay Diagnostics i.e., Bluejay Diagnostics and Tenon Medical go up and down completely randomly.
Pair Corralation between Bluejay Diagnostics and Tenon Medical
Given the investment horizon of 90 days Bluejay Diagnostics is expected to generate 1.17 times more return on investment than Tenon Medical. However, Bluejay Diagnostics is 1.17 times more volatile than Tenon Medical. It trades about 0.01 of its potential returns per unit of risk. Tenon Medical is currently generating about -0.02 per unit of risk. If you would invest 810.00 in Bluejay Diagnostics on November 2, 2024 and sell it today you would lose (388.00) from holding Bluejay Diagnostics or give up 47.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bluejay Diagnostics vs. Tenon Medical
Performance |
| Timeline |
| Bluejay Diagnostics |
| Tenon Medical |
Bluejay Diagnostics and Tenon Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bluejay Diagnostics and Tenon Medical
The main advantage of trading using opposite Bluejay Diagnostics and Tenon Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bluejay Diagnostics position performs unexpectedly, Tenon Medical 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 Tenon Medical will offset losses from the drop in Tenon Medical'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 |
| Tenon Medical vs. Ainos Inc | Tenon Medical vs. STRATA Skin Sciences | Tenon Medical vs. Neuropace | Tenon Medical vs. Movano Inc |
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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