Correlation Between ConforMIS and Myomo
Can any of the company-specific risk be diversified away by investing in both ConforMIS and Myomo 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 ConforMIS and Myomo into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ConforMIS and Myomo Inc, you can compare the effects of market volatilities on ConforMIS and Myomo 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 ConforMIS with a short position of Myomo. Check out your portfolio center. Please also check ongoing floating volatility patterns of ConforMIS and Myomo.
Diversification Opportunities for ConforMIS and Myomo
Very poor diversification
The 3 months correlation between ConforMIS and Myomo is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding ConforMIS and Myomo Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Myomo Inc and ConforMIS 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 ConforMIS are associated (or correlated) with Myomo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Myomo Inc has no effect on the direction of ConforMIS i.e., ConforMIS and Myomo go up and down completely randomly.
Pair Corralation between ConforMIS and Myomo
If you would invest 499.00 in Myomo Inc on September 13, 2024 and sell it today you would earn a total of 139.00 from holding Myomo Inc or generate 27.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 4.76% |
| Values | Daily Returns |
ConforMIS vs. Myomo Inc
Performance |
| Timeline |
| ConforMIS |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Myomo Inc |
ConforMIS and Myomo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ConforMIS and Myomo
The main advantage of trading using opposite ConforMIS and Myomo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ConforMIS position performs unexpectedly, Myomo 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 Myomo will offset losses from the drop in Myomo's long position.| ConforMIS vs. Bone Biologics Corp | ConforMIS vs. Tivic Health Systems | ConforMIS vs. Bluejay Diagnostics | ConforMIS vs. Vivos Therapeutics |
| Myomo vs. SINTX Technologies | Myomo vs. ReShape Lifesciences | Myomo vs. Bone Biologics Corp | Myomo vs. Tivic Health Systems |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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