Correlation Between Paragon 28 and Artivion
Can any of the company-specific risk be diversified away by investing in both Paragon 28 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 Paragon 28 and Artivion into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Paragon 28 and Artivion, you can compare the effects of market volatilities on Paragon 28 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 Paragon 28 with a short position of Artivion. Check out your portfolio center. Please also check ongoing floating volatility patterns of Paragon 28 and Artivion.
Diversification Opportunities for Paragon 28 and Artivion
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Paragon and Artivion is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Paragon 28 and Artivion in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Artivion and Paragon 28 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 Paragon 28 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 Paragon 28 i.e., Paragon 28 and Artivion go up and down completely randomly.
Pair Corralation between Paragon 28 and Artivion
Considering the 90-day investment horizon Paragon 28 is expected to generate 4.51 times more return on investment than Artivion. However, Paragon 28 is 4.51 times more volatile than Artivion. It trades about 0.42 of its potential returns per unit of risk. Artivion is currently generating about 0.18 per unit of risk. If you would invest 484.00 in Paragon 28 on August 28, 2024 and sell it today you would earn a total of 502.00 from holding Paragon 28 or generate 103.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Paragon 28 vs. Artivion
Performance |
| Timeline |
| Paragon 28 |
| Artivion |
Paragon 28 and Artivion Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Paragon 28 and Artivion
The main advantage of trading using opposite Paragon 28 and Artivion positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Paragon 28 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.| Paragon 28 vs. Heartbeam | Paragon 28 vs. EUDA Health Holdings | Paragon 28 vs. Nutex Health | Paragon 28 vs. Healthcare Triangle |
| Artivion vs. Heartbeam | Artivion vs. EUDA Health Holdings | Artivion vs. Nutex Health | Artivion vs. Healthcare Triangle |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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