Correlation Between BrainsWay and STRATA Skin
Can any of the company-specific risk be diversified away by investing in both BrainsWay and STRATA Skin 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 BrainsWay and STRATA Skin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BrainsWay and STRATA Skin Sciences, you can compare the effects of market volatilities on BrainsWay and STRATA Skin 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 BrainsWay with a short position of STRATA Skin. Check out your portfolio center. Please also check ongoing floating volatility patterns of BrainsWay and STRATA Skin.
Diversification Opportunities for BrainsWay and STRATA Skin
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BrainsWay and STRATA is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding BrainsWay and STRATA Skin Sciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STRATA Skin Sciences and BrainsWay 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 BrainsWay are associated (or correlated) with STRATA Skin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STRATA Skin Sciences has no effect on the direction of BrainsWay i.e., BrainsWay and STRATA Skin go up and down completely randomly.
Pair Corralation between BrainsWay and STRATA Skin
If you would invest 315.00 in BrainsWay on August 30, 2024 and sell it today you would earn a total of 0.00 from holding BrainsWay or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
BrainsWay vs. STRATA Skin Sciences
Performance |
| Timeline |
| BrainsWay |
| STRATA Skin Sciences |
BrainsWay and STRATA Skin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BrainsWay and STRATA Skin
The main advantage of trading using opposite BrainsWay and STRATA Skin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BrainsWay position performs unexpectedly, STRATA Skin 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 STRATA Skin will offset losses from the drop in STRATA Skin's long position.| BrainsWay vs. Brainsway | BrainsWay vs. Bluejay Diagnostics | BrainsWay vs. Venus Concept | BrainsWay vs. Icecure Medical |
| STRATA Skin vs. Axogen Inc | STRATA Skin vs. Ainos Inc | STRATA Skin vs. LENSAR Inc | STRATA Skin vs. Nexalin Technology |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |