Correlation Between Electromed and Sientra
Can any of the company-specific risk be diversified away by investing in both Electromed and Sientra 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 Electromed and Sientra into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Electromed and Sientra, you can compare the effects of market volatilities on Electromed and Sientra 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 Electromed with a short position of Sientra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Electromed and Sientra.
Diversification Opportunities for Electromed and Sientra
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Electromed and Sientra is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Electromed and Sientra in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sientra and Electromed 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 Electromed are associated (or correlated) with Sientra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sientra has no effect on the direction of Electromed i.e., Electromed and Sientra go up and down completely randomly.
Pair Corralation between Electromed and Sientra
If you would invest 1,296 in Electromed on November 9, 2024 and sell it today you would earn a total of 2,134 from holding Electromed or generate 164.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Electromed vs. Sientra
Performance |
| Timeline |
| Electromed |
| Sientra |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Electromed and Sientra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Electromed and Sientra
The main advantage of trading using opposite Electromed and Sientra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Electromed position performs unexpectedly, Sientra 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 Sientra will offset losses from the drop in Sientra's long position.| Electromed vs. Neuropace | Electromed vs. Orthopediatrics Corp | Electromed vs. SurModics | Electromed vs. Paragon 28 |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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