Correlation Between Electromed and Telesis Bio
Can any of the company-specific risk be diversified away by investing in both Electromed and Telesis Bio 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 Telesis Bio into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Electromed and Telesis Bio, you can compare the effects of market volatilities on Electromed and Telesis Bio 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 Telesis Bio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Electromed and Telesis Bio.
Diversification Opportunities for Electromed and Telesis Bio
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Electromed and Telesis is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Electromed and Telesis Bio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Telesis Bio 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 Telesis Bio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Telesis Bio has no effect on the direction of Electromed i.e., Electromed and Telesis Bio go up and down completely randomly.
Pair Corralation between Electromed and Telesis Bio
If you would invest 2,779 in Electromed on September 14, 2024 and sell it today you would earn a total of 81.00 from holding Electromed or generate 2.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Electromed vs. Telesis Bio
Performance |
| Timeline |
| Electromed |
| Telesis Bio |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Solid
Electromed and Telesis Bio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Electromed and Telesis Bio
The main advantage of trading using opposite Electromed and Telesis Bio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Electromed position performs unexpectedly, Telesis Bio 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 Telesis Bio will offset losses from the drop in Telesis Bio's long position.| Electromed vs. Neuropace | Electromed vs. Orthopediatrics Corp | Electromed vs. SurModics | Electromed vs. Paragon 28 |
| Telesis Bio vs. Catalent | Telesis Bio vs. Summit Materials | Telesis Bio vs. Lion One Metals | Telesis Bio vs. Todos Medical |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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