Correlation Between Apyx Medical and Sands China
Can any of the company-specific risk be diversified away by investing in both Apyx Medical and Sands China 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 Sands China into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apyx Medical Corp and Sands China, you can compare the effects of market volatilities on Apyx Medical and Sands China 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 Sands China. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apyx Medical and Sands China.
Diversification Opportunities for Apyx Medical and Sands China
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Apyx and Sands is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Apyx Medical Corp and Sands China in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sands China 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 Corp are associated (or correlated) with Sands China. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sands China has no effect on the direction of Apyx Medical i.e., Apyx Medical and Sands China go up and down completely randomly.
Pair Corralation between Apyx Medical and Sands China
Assuming the 90 days trading horizon Apyx Medical is expected to generate 1.4 times less return on investment than Sands China. In addition to that, Apyx Medical is 1.39 times more volatile than Sands China. It trades about 0.06 of its total potential returns per unit of risk. Sands China is currently generating about 0.11 per unit of volatility. If you would invest 154.00 in Sands China on November 2, 2024 and sell it today you would earn a total of 68.00 from holding Sands China or generate 44.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.04% |
| Values | Daily Returns |
Apyx Medical Corp vs. Sands China
Performance |
| Timeline |
| Apyx Medical Corp |
| Sands China |
Apyx Medical and Sands China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apyx Medical and Sands China
The main advantage of trading using opposite Apyx Medical and Sands China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apyx Medical position performs unexpectedly, Sands China 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 Sands China will offset losses from the drop in Sands China's long position.| Apyx Medical vs. AEON METALS LTD | Apyx Medical vs. Easy Software AG | Apyx Medical vs. Guidewire Software | Apyx Medical vs. NORTHEAST UTILITIES |
| Sands China vs. Charter Communications | Sands China vs. GEELY AUTOMOBILE | Sands China vs. SEI INVESTMENTS | Sands China vs. Keck Seng Investments |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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