Correlation Between Apyx Medical and British American
Can any of the company-specific risk be diversified away by investing in both Apyx Medical and British American 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 British American 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 British American Tobacco, you can compare the effects of market volatilities on Apyx Medical and British American 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 British American. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apyx Medical and British American.
Diversification Opportunities for Apyx Medical and British American
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Apyx and British is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Apyx Medical Corp and British American Tobacco in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on British American Tobacco 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 British American. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of British American Tobacco has no effect on the direction of Apyx Medical i.e., Apyx Medical and British American go up and down completely randomly.
Pair Corralation between Apyx Medical and British American
Assuming the 90 days trading horizon Apyx Medical Corp is expected to under-perform the British American. In addition to that, Apyx Medical is 4.44 times more volatile than British American Tobacco. It trades about -0.19 of its total potential returns per unit of risk. British American Tobacco is currently generating about -0.1 per unit of volatility. If you would invest 3,496 in British American Tobacco on October 20, 2024 and sell it today you would lose (56.00) from holding British American Tobacco or give up 1.6% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Apyx Medical Corp vs. British American Tobacco
Performance |
| Timeline |
| Apyx Medical Corp |
| British American Tobacco |
Apyx Medical and British American Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apyx Medical and British American
The main advantage of trading using opposite Apyx Medical and British American positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apyx Medical position performs unexpectedly, British American 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 British American will offset losses from the drop in British American's long position.| Apyx Medical vs. Corporate Travel Management | Apyx Medical vs. Easy Software AG | Apyx Medical vs. Platinum Investment Management | Apyx Medical vs. Waste Management |
| British American vs. GigaMedia | British American vs. PENN NATL GAMING | British American vs. Tencent Music Entertainment | British American vs. Urban Outfitters |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |