Correlation Between Brainsway and SINTX Technologies
Can any of the company-specific risk be diversified away by investing in both Brainsway and SINTX Technologies 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 SINTX Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Brainsway and SINTX Technologies, you can compare the effects of market volatilities on Brainsway and SINTX Technologies 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 SINTX Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brainsway and SINTX Technologies.
Diversification Opportunities for Brainsway and SINTX Technologies
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Brainsway and SINTX is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Brainsway and SINTX Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SINTX Technologies 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 SINTX Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SINTX Technologies has no effect on the direction of Brainsway i.e., Brainsway and SINTX Technologies go up and down completely randomly.
Pair Corralation between Brainsway and SINTX Technologies
Given the investment horizon of 90 days Brainsway is expected to generate 0.34 times more return on investment than SINTX Technologies. However, Brainsway is 2.98 times less risky than SINTX Technologies. It trades about 0.11 of its potential returns per unit of risk. SINTX Technologies is currently generating about 0.01 per unit of risk. If you would invest 662.00 in Brainsway on September 1, 2024 and sell it today you would earn a total of 325.00 from holding Brainsway or generate 49.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Brainsway vs. SINTX Technologies
Performance |
| Timeline |
| Brainsway |
| SINTX Technologies |
Brainsway and SINTX Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Brainsway and SINTX Technologies
The main advantage of trading using opposite Brainsway and SINTX Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brainsway position performs unexpectedly, SINTX Technologies 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 SINTX Technologies will offset losses from the drop in SINTX Technologies' long position.| Brainsway vs. Profound Medical Corp | Brainsway vs. Si Bone | Brainsway vs. Nevro Corp | Brainsway vs. Paragon 28 |
| SINTX Technologies vs. ReShape Lifesciences | SINTX Technologies vs. Bone Biologics Corp | SINTX Technologies vs. Tivic Health Systems | SINTX Technologies vs. Nuwellis |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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