Correlation Between Femasys and Globus Medical
Can any of the company-specific risk be diversified away by investing in both Femasys and Globus Medical 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 Femasys and Globus Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Femasys and Globus Medical, you can compare the effects of market volatilities on Femasys and Globus Medical 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 Femasys with a short position of Globus Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Femasys and Globus Medical.
Diversification Opportunities for Femasys and Globus Medical
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Femasys and Globus is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Femasys and Globus Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Globus Medical and Femasys 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 Femasys are associated (or correlated) with Globus Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Globus Medical has no effect on the direction of Femasys i.e., Femasys and Globus Medical go up and down completely randomly.
Pair Corralation between Femasys and Globus Medical
Given the investment horizon of 90 days Femasys is expected to generate 1.69 times less return on investment than Globus Medical. In addition to that, Femasys is 2.52 times more volatile than Globus Medical. It trades about 0.04 of its total potential returns per unit of risk. Globus Medical is currently generating about 0.18 per unit of volatility. If you would invest 7,218 in Globus Medical on November 2, 2024 and sell it today you would earn a total of 2,094 from holding Globus Medical or generate 29.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Femasys vs. Globus Medical
Performance |
| Timeline |
| Femasys |
| Globus Medical |
Femasys and Globus Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Femasys and Globus Medical
The main advantage of trading using opposite Femasys and Globus Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Femasys position performs unexpectedly, Globus Medical 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 Globus Medical will offset losses from the drop in Globus Medical's long position.| Femasys vs. Precision Optics, | Femasys vs. Repro Med Systems | Femasys vs. InfuSystems Holdings | Femasys vs. Utah Medical Products |
| Globus Medical vs. Orthofix Medical | Globus Medical vs. CONMED | Globus Medical vs. Alphatec Holdings | Globus Medical vs. LivaNova PLC |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |