Correlation Between Establishment Labs and Artivion
Can any of the company-specific risk be diversified away by investing in both Establishment Labs and Artivion 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 Establishment Labs and Artivion into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Establishment Labs Holdings and Artivion, you can compare the effects of market volatilities on Establishment Labs and Artivion 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 Establishment Labs with a short position of Artivion. Check out your portfolio center. Please also check ongoing floating volatility patterns of Establishment Labs and Artivion.
Diversification Opportunities for Establishment Labs and Artivion
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Establishment and Artivion is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Establishment Labs Holdings and Artivion in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Artivion and Establishment Labs 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 Establishment Labs Holdings are associated (or correlated) with Artivion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Artivion has no effect on the direction of Establishment Labs i.e., Establishment Labs and Artivion go up and down completely randomly.
Pair Corralation between Establishment Labs and Artivion
Given the investment horizon of 90 days Establishment Labs Holdings is expected to under-perform the Artivion. In addition to that, Establishment Labs is 3.14 times more volatile than Artivion. It trades about -0.21 of its total potential returns per unit of risk. Artivion is currently generating about 0.24 per unit of volatility. If you would invest 2,859 in Artivion on November 1, 2024 and sell it today you would earn a total of 278.00 from holding Artivion or generate 9.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Establishment Labs Holdings vs. Artivion
Performance |
| Timeline |
| Establishment Labs |
| Artivion |
Establishment Labs and Artivion Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Establishment Labs and Artivion
The main advantage of trading using opposite Establishment Labs and Artivion positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Establishment Labs position performs unexpectedly, Artivion 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 Artivion will offset losses from the drop in Artivion's long position.| Establishment Labs vs. Orthopediatrics Corp | Establishment Labs vs. Integer Holdings Corp | Establishment Labs vs. Treace Medical Concepts | Establishment Labs vs. CONMED |
| Artivion vs. Anika Therapeutics | Artivion vs. Sight Sciences | Artivion vs. Orthofix Medical | Artivion vs. Avanos 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |