Correlation Between Apyx Medical and SCOTT TECHNOLOGY
Can any of the company-specific risk be diversified away by investing in both Apyx Medical and SCOTT TECHNOLOGY 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 SCOTT TECHNOLOGY 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 SCOTT TECHNOLOGY, you can compare the effects of market volatilities on Apyx Medical and SCOTT TECHNOLOGY 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 SCOTT TECHNOLOGY. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apyx Medical and SCOTT TECHNOLOGY.
Diversification Opportunities for Apyx Medical and SCOTT TECHNOLOGY
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Apyx and SCOTT is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Apyx Medical Corp and SCOTT TECHNOLOGY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SCOTT TECHNOLOGY 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 SCOTT TECHNOLOGY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SCOTT TECHNOLOGY has no effect on the direction of Apyx Medical i.e., Apyx Medical and SCOTT TECHNOLOGY go up and down completely randomly.
Pair Corralation between Apyx Medical and SCOTT TECHNOLOGY
Assuming the 90 days trading horizon Apyx Medical Corp is expected to under-perform the SCOTT TECHNOLOGY. In addition to that, Apyx Medical is 2.14 times more volatile than SCOTT TECHNOLOGY. It trades about -0.01 of its total potential returns per unit of risk. SCOTT TECHNOLOGY is currently generating about -0.03 per unit of volatility. If you would invest 121.00 in SCOTT TECHNOLOGY on November 2, 2024 and sell it today you would lose (2.00) from holding SCOTT TECHNOLOGY or give up 1.65% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Apyx Medical Corp vs. SCOTT TECHNOLOGY
Performance |
| Timeline |
| Apyx Medical Corp |
| SCOTT TECHNOLOGY |
Apyx Medical and SCOTT TECHNOLOGY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apyx Medical and SCOTT TECHNOLOGY
The main advantage of trading using opposite Apyx Medical and SCOTT TECHNOLOGY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apyx Medical position performs unexpectedly, SCOTT TECHNOLOGY 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 SCOTT TECHNOLOGY will offset losses from the drop in SCOTT TECHNOLOGY'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 |
| SCOTT TECHNOLOGY vs. DeVry Education Group | SCOTT TECHNOLOGY vs. SPARTAN STORES | SCOTT TECHNOLOGY vs. AEON STORES | SCOTT TECHNOLOGY vs. H2O Retailing |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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