Correlation Between Greenbrook TMS and Tenon Medical
Can any of the company-specific risk be diversified away by investing in both Greenbrook TMS and Tenon 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 Greenbrook TMS and Tenon Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Greenbrook TMS and Tenon Medical, you can compare the effects of market volatilities on Greenbrook TMS and Tenon 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 Greenbrook TMS with a short position of Tenon Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Greenbrook TMS and Tenon Medical.
Diversification Opportunities for Greenbrook TMS and Tenon Medical
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Greenbrook and Tenon is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Greenbrook TMS and Tenon Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tenon Medical and Greenbrook TMS 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 Greenbrook TMS are associated (or correlated) with Tenon Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tenon Medical has no effect on the direction of Greenbrook TMS i.e., Greenbrook TMS and Tenon Medical go up and down completely randomly.
Pair Corralation between Greenbrook TMS and Tenon Medical
Given the investment horizon of 90 days Greenbrook TMS is expected to under-perform the Tenon Medical. But the stock apears to be less risky and, when comparing its historical volatility, Greenbrook TMS is 1.47 times less risky than Tenon Medical. The stock trades about -0.3 of its potential returns per unit of risk. The Tenon Medical is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 6,976 in Tenon Medical on August 31, 2024 and sell it today you would lose (6,747) from holding Tenon Medical or give up 96.72% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 8.56% |
| Values | Daily Returns |
Greenbrook TMS vs. Tenon Medical
Performance |
| Timeline |
| Greenbrook TMS |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Tenon Medical |
Greenbrook TMS and Tenon Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Greenbrook TMS and Tenon Medical
The main advantage of trading using opposite Greenbrook TMS and Tenon Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Greenbrook TMS position performs unexpectedly, Tenon 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 Tenon Medical will offset losses from the drop in Tenon Medical's long position.The idea behind Greenbrook TMS and Tenon Medical pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Tenon Medical vs. Ainos Inc | Tenon Medical vs. STRATA Skin Sciences | Tenon Medical vs. Neuropace | Tenon Medical vs. Movano Inc |
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.
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