Correlation Between G Medical and Tevano Systems
Can any of the company-specific risk be diversified away by investing in both G Medical and Tevano Systems 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 G Medical and Tevano Systems into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between G Medical Innovations and Tevano Systems Holdings, you can compare the effects of market volatilities on G Medical and Tevano Systems 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 G Medical with a short position of Tevano Systems. Check out your portfolio center. Please also check ongoing floating volatility patterns of G Medical and Tevano Systems.
Diversification Opportunities for G Medical and Tevano Systems
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between GMVD and Tevano is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding G Medical Innovations and Tevano Systems Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tevano Systems Holdings and G Medical 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 G Medical Innovations are associated (or correlated) with Tevano Systems. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tevano Systems Holdings has no effect on the direction of G Medical i.e., G Medical and Tevano Systems go up and down completely randomly.
Pair Corralation between G Medical and Tevano Systems
Given the investment horizon of 90 days G Medical Innovations is expected to under-perform the Tevano Systems. But the stock apears to be less risky and, when comparing its historical volatility, G Medical Innovations is 5.08 times less risky than Tevano Systems. The stock trades about -0.18 of its potential returns per unit of risk. The Tevano Systems Holdings is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 7.21 in Tevano Systems Holdings on November 2, 2024 and sell it today you would lose (7.21) from holding Tevano Systems Holdings or give up 100.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 22.76% |
| Values | Daily Returns |
G Medical Innovations vs. Tevano Systems Holdings
Performance |
| Timeline |
| G Medical Innovations |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Tevano Systems Holdings |
G Medical and Tevano Systems Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with G Medical and Tevano Systems
The main advantage of trading using opposite G Medical and Tevano Systems positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if G Medical position performs unexpectedly, Tevano Systems 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 Tevano Systems will offset losses from the drop in Tevano Systems' long position.| G Medical vs. Innovative Eyewear | G Medical vs. Sharps Technology | G Medical vs. JIN MEDICAL INTERNATIONAL | G Medical vs. Nexgel Inc |
| Tevano Systems vs. Wearable Health Solutions | Tevano Systems vs. CeCors Inc | Tevano Systems vs. Innerscope Advertising Agency | Tevano Systems vs. Utah Medical Products |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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