Correlation Between Bruker and Apyx Medical
Can any of the company-specific risk be diversified away by investing in both Bruker and Apyx 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 Bruker and Apyx Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bruker and Apyx Medical, you can compare the effects of market volatilities on Bruker and Apyx 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 Bruker with a short position of Apyx Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bruker and Apyx Medical.
Diversification Opportunities for Bruker and Apyx Medical
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bruker and Apyx is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Bruker and Apyx Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apyx Medical and Bruker 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 Bruker are associated (or correlated) with Apyx Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apyx Medical has no effect on the direction of Bruker i.e., Bruker and Apyx Medical go up and down completely randomly.
Pair Corralation between Bruker and Apyx Medical
Given the investment horizon of 90 days Bruker is expected to generate 67.9 times less return on investment than Apyx Medical. But when comparing it to its historical volatility, Bruker is 2.76 times less risky than Apyx Medical. It trades about 0.0 of its potential returns per unit of risk. Apyx Medical is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 183.00 in Apyx Medical on August 28, 2024 and sell it today you would lose (39.00) from holding Apyx Medical or give up 21.31% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bruker vs. Apyx Medical
Performance |
| Timeline |
| Bruker |
| Apyx Medical |
Bruker and Apyx Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bruker and Apyx Medical
The main advantage of trading using opposite Bruker and Apyx Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bruker position performs unexpectedly, Apyx 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 Apyx Medical will offset losses from the drop in Apyx Medical's long position.The idea behind Bruker and Apyx Medical pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Apyx Medical vs. Neuropace | Apyx Medical vs. Inogen Inc | Apyx Medical vs. SurModics | Apyx Medical vs. Pulmonx Corp |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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