Correlation Between CONMED and Nanomix
Can any of the company-specific risk be diversified away by investing in both CONMED and Nanomix 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 Nanomix into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CONMED and Nanomix, you can compare the effects of market volatilities on CONMED and Nanomix 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 Nanomix. Check out your portfolio center. Please also check ongoing floating volatility patterns of CONMED and Nanomix.
Diversification Opportunities for CONMED and Nanomix
Modest diversification
The 3 months correlation between CONMED and Nanomix is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding CONMED and Nanomix in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nanomix 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 Nanomix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nanomix has no effect on the direction of CONMED i.e., CONMED and Nanomix go up and down completely randomly.
Pair Corralation between CONMED and Nanomix
Given the investment horizon of 90 days CONMED is expected to under-perform the Nanomix. But the stock apears to be less risky and, when comparing its historical volatility, CONMED is 6.04 times less risky than Nanomix. The stock trades about -0.01 of its potential returns per unit of risk. The Nanomix is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 16.00 in Nanomix on September 3, 2024 and sell it today you would lose (15.98) from holding Nanomix or give up 99.87% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CONMED vs. Nanomix
Performance |
| Timeline |
| CONMED |
| Nanomix |
CONMED and Nanomix Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CONMED and Nanomix
The main advantage of trading using opposite CONMED and Nanomix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CONMED position performs unexpectedly, Nanomix 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 Nanomix will offset losses from the drop in Nanomix's long position.| CONMED vs. Tandem Diabetes Care | CONMED vs. Inspire Medical Systems | CONMED vs. Penumbra | CONMED vs. Insulet |
| Nanomix vs. Anteris Technologies | Nanomix vs. Armm Inc | Nanomix vs. Cellink AB | Nanomix vs. Bone Biologics 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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