Correlation Between Delcath Systems and Vapotherm
Can any of the company-specific risk be diversified away by investing in both Delcath Systems and Vapotherm 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 Delcath Systems and Vapotherm into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Delcath Systems and Vapotherm, you can compare the effects of market volatilities on Delcath Systems and Vapotherm 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 Delcath Systems with a short position of Vapotherm. Check out your portfolio center. Please also check ongoing floating volatility patterns of Delcath Systems and Vapotherm.
Diversification Opportunities for Delcath Systems and Vapotherm
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Delcath and Vapotherm is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Delcath Systems and Vapotherm in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vapotherm and Delcath Systems 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 Delcath Systems are associated (or correlated) with Vapotherm. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vapotherm has no effect on the direction of Delcath Systems i.e., Delcath Systems and Vapotherm go up and down completely randomly.
Pair Corralation between Delcath Systems and Vapotherm
If you would invest 705.00 in Delcath Systems on August 29, 2024 and sell it today you would earn a total of 417.00 from holding Delcath Systems or generate 59.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 0.79% |
| Values | Daily Returns |
Delcath Systems vs. Vapotherm
Performance |
| Timeline |
| Delcath Systems |
| Vapotherm |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Delcath Systems and Vapotherm Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Delcath Systems and Vapotherm
The main advantage of trading using opposite Delcath Systems and Vapotherm positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Delcath Systems position performs unexpectedly, Vapotherm 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 Vapotherm will offset losses from the drop in Vapotherm's long position.| Delcath Systems vs. Neuropace | Delcath Systems vs. SurModics | Delcath Systems vs. CVRx Inc | Delcath Systems vs. LivaNova PLC |
| Vapotherm vs. Sight Sciences | Vapotherm vs. STRATA Skin Sciences | Vapotherm vs. Neuropace | Vapotherm 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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