Correlation Between Dynatronics and SANUWAVE Health
Can any of the company-specific risk be diversified away by investing in both Dynatronics and SANUWAVE Health 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 Dynatronics and SANUWAVE Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dynatronics and SANUWAVE Health, you can compare the effects of market volatilities on Dynatronics and SANUWAVE Health 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 Dynatronics with a short position of SANUWAVE Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dynatronics and SANUWAVE Health.
Diversification Opportunities for Dynatronics and SANUWAVE Health
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Dynatronics and SANUWAVE is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Dynatronics and SANUWAVE Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SANUWAVE Health and Dynatronics 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 Dynatronics are associated (or correlated) with SANUWAVE Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SANUWAVE Health has no effect on the direction of Dynatronics i.e., Dynatronics and SANUWAVE Health go up and down completely randomly.
Pair Corralation between Dynatronics and SANUWAVE Health
If you would invest 2,300 in SANUWAVE Health on November 1, 2024 and sell it today you would earn a total of 490.00 from holding SANUWAVE Health or generate 21.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 5.0% |
| Values | Daily Returns |
Dynatronics vs. SANUWAVE Health
Performance |
| Timeline |
| Dynatronics |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| SANUWAVE Health |
Dynatronics and SANUWAVE Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dynatronics and SANUWAVE Health
The main advantage of trading using opposite Dynatronics and SANUWAVE Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dynatronics position performs unexpectedly, SANUWAVE Health 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 SANUWAVE Health will offset losses from the drop in SANUWAVE Health's long position.| Dynatronics vs. STRATA Skin Sciences | Dynatronics vs. Aurora Spine | Dynatronics vs. Sight Sciences | Dynatronics vs. Neuropace |
| SANUWAVE Health vs. Rafarma Pharmaceuticals | SANUWAVE Health vs. GulfSlope Energy | SANUWAVE Health vs. TSS, Common Stock |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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