Correlation Between CONMED and 908 Devices
Can any of the company-specific risk be diversified away by investing in both CONMED and 908 Devices 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 CONMED and 908 Devices into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CONMED and 908 Devices, you can compare the effects of market volatilities on CONMED and 908 Devices 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 CONMED with a short position of 908 Devices. Check out your portfolio center. Please also check ongoing floating volatility patterns of CONMED and 908 Devices.
Diversification Opportunities for CONMED and 908 Devices
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between CONMED and 908 is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding CONMED and 908 Devices in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 908 Devices and CONMED 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 CONMED are associated (or correlated) with 908 Devices. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 908 Devices has no effect on the direction of CONMED i.e., CONMED and 908 Devices go up and down completely randomly.
Pair Corralation between CONMED and 908 Devices
Given the investment horizon of 90 days CONMED is expected to generate 0.32 times more return on investment than 908 Devices. However, CONMED is 3.14 times less risky than 908 Devices. It trades about 0.25 of its potential returns per unit of risk. 908 Devices is currently generating about -0.09 per unit of risk. If you would invest 6,305 in CONMED on August 23, 2024 and sell it today you would earn a total of 866.00 from holding CONMED or generate 13.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CONMED vs. 908 Devices
Performance |
| Timeline |
| CONMED |
| 908 Devices |
CONMED and 908 Devices Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CONMED and 908 Devices
The main advantage of trading using opposite CONMED and 908 Devices positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CONMED position performs unexpectedly, 908 Devices 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 908 Devices will offset losses from the drop in 908 Devices' long position.The idea behind CONMED and 908 Devices 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.| 908 Devices vs. Inari Medical | 908 Devices vs. CONMED | 908 Devices vs. Glaukos Corp | 908 Devices vs. Nevro 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |