Correlation Between Paragon 28 and Beyond Air
Can any of the company-specific risk be diversified away by investing in both Paragon 28 and Beyond Air 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 Beyond Air into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Paragon 28 and Beyond Air, you can compare the effects of market volatilities on Paragon 28 and Beyond Air 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 Beyond Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of Paragon 28 and Beyond Air.
Diversification Opportunities for Paragon 28 and Beyond Air
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Paragon and Beyond is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Paragon 28 and Beyond Air in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beyond Air 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 Beyond Air. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beyond Air has no effect on the direction of Paragon 28 i.e., Paragon 28 and Beyond Air go up and down completely randomly.
Pair Corralation between Paragon 28 and Beyond Air
Considering the 90-day investment horizon Paragon 28 is expected to generate 0.04 times more return on investment than Beyond Air. However, Paragon 28 is 24.9 times less risky than Beyond Air. It trades about 0.02 of its potential returns per unit of risk. Beyond Air is currently generating about -0.28 per unit of risk. If you would invest 1,303 in Paragon 28 on December 1, 2024 and sell it today you would earn a total of 1.00 from holding Paragon 28 or generate 0.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Paragon 28 vs. Beyond Air
Performance |
| Timeline |
| Paragon 28 |
| Beyond Air |
Paragon 28 and Beyond Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Paragon 28 and Beyond Air
The main advantage of trading using opposite Paragon 28 and Beyond Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Paragon 28 position performs unexpectedly, Beyond Air 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 Beyond Air will offset losses from the drop in Beyond Air's long position.| Paragon 28 vs. Pulmonx Corp | Paragon 28 vs. Iradimed Co | Paragon 28 vs. Orthofix Medical | Paragon 28 vs. Neuropace |
| Beyond Air vs. Lucid Diagnostics | Beyond Air vs. PAVmed Series Z | Beyond Air vs. Clearpoint Neuro | Beyond Air vs. Avita 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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