Correlation Between Electromedical Technologies and Senseonics Holdings
Can any of the company-specific risk be diversified away by investing in both Electromedical Technologies and Senseonics Holdings 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 Electromedical Technologies and Senseonics Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Electromedical Technologies and Senseonics Holdings, you can compare the effects of market volatilities on Electromedical Technologies and Senseonics Holdings 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 Electromedical Technologies with a short position of Senseonics Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Electromedical Technologies and Senseonics Holdings.
Diversification Opportunities for Electromedical Technologies and Senseonics Holdings
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Electromedical and Senseonics is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Electromedical Technologies and Senseonics Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Senseonics Holdings and Electromedical Technologies 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 Electromedical Technologies are associated (or correlated) with Senseonics Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Senseonics Holdings has no effect on the direction of Electromedical Technologies i.e., Electromedical Technologies and Senseonics Holdings go up and down completely randomly.
Pair Corralation between Electromedical Technologies and Senseonics Holdings
Given the investment horizon of 90 days Electromedical Technologies is expected to generate 3.01 times more return on investment than Senseonics Holdings. However, Electromedical Technologies is 3.01 times more volatile than Senseonics Holdings. It trades about 0.02 of its potential returns per unit of risk. Senseonics Holdings is currently generating about -0.02 per unit of risk. If you would invest 0.70 in Electromedical Technologies on September 20, 2024 and sell it today you would lose (0.67) from holding Electromedical Technologies or give up 95.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Electromedical Technologies vs. Senseonics Holdings
Performance |
| Timeline |
| Electromedical Technologies |
| Senseonics Holdings |
Electromedical Technologies and Senseonics Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Electromedical Technologies and Senseonics Holdings
The main advantage of trading using opposite Electromedical Technologies and Senseonics Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Electromedical Technologies position performs unexpectedly, Senseonics Holdings 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 Senseonics Holdings will offset losses from the drop in Senseonics Holdings' long position.| Electromedical Technologies vs. Abbott Laboratories | Electromedical Technologies vs. Stryker | Electromedical Technologies vs. Boston Scientific Corp | Electromedical Technologies vs. Medtronic PLC |
| Senseonics Holdings vs. Insulet | Senseonics Holdings vs. Tandem Diabetes Care | Senseonics Holdings vs. Abbott Laboratories | Senseonics Holdings vs. Align 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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |