Correlation Between Biomerica and Senseonics Holdings
Can any of the company-specific risk be diversified away by investing in both Biomerica and Senseonics Holdings 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 Biomerica and Senseonics Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Biomerica and Senseonics Holdings, you can compare the effects of market volatilities on Biomerica and Senseonics Holdings 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 Biomerica with a short position of Senseonics Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Biomerica and Senseonics Holdings.
Diversification Opportunities for Biomerica and Senseonics Holdings
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Biomerica and Senseonics is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Biomerica and Senseonics Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Senseonics Holdings and Biomerica 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 Biomerica are associated (or correlated) with Senseonics Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Senseonics Holdings has no effect on the direction of Biomerica i.e., Biomerica and Senseonics Holdings go up and down completely randomly.
Pair Corralation between Biomerica and Senseonics Holdings
Given the investment horizon of 90 days Biomerica is expected to generate 1.32 times more return on investment than Senseonics Holdings. However, Biomerica is 1.32 times more volatile than Senseonics Holdings. It trades about 0.07 of its potential returns per unit of risk. Senseonics Holdings is currently generating about -0.07 per unit of risk. If you would invest 37.00 in Biomerica on September 1, 2024 and sell it today you would earn a total of 2.00 from holding Biomerica or generate 5.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Biomerica vs. Senseonics Holdings
Performance |
| Timeline |
| Biomerica |
| Senseonics Holdings |
Biomerica and Senseonics Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Biomerica and Senseonics Holdings
The main advantage of trading using opposite Biomerica and Senseonics Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Biomerica position performs unexpectedly, Senseonics Holdings 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 Senseonics Holdings will offset losses from the drop in Senseonics Holdings' long position.| Biomerica vs. SurModics | Biomerica vs. Movano Inc | Biomerica vs. Ainos Inc | Biomerica vs. Tivic Health Systems |
| Senseonics Holdings vs. Profound Medical Corp | Senseonics Holdings vs. Si Bone | Senseonics Holdings vs. Nevro Corp | Senseonics Holdings vs. Paragon 28 |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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