Correlation Between GN Store and Tivic Health
Can any of the company-specific risk be diversified away by investing in both GN Store and Tivic Health 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 GN Store and Tivic Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GN Store Nord and Tivic Health Systems, you can compare the effects of market volatilities on GN Store and Tivic Health 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 GN Store with a short position of Tivic Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of GN Store and Tivic Health.
Diversification Opportunities for GN Store and Tivic Health
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between GNNDY and Tivic is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding GN Store Nord and Tivic Health Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tivic Health Systems and GN Store 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 GN Store Nord are associated (or correlated) with Tivic Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tivic Health Systems has no effect on the direction of GN Store i.e., GN Store and Tivic Health go up and down completely randomly.
Pair Corralation between GN Store and Tivic Health
Assuming the 90 days horizon GN Store Nord is expected to generate 0.27 times more return on investment than Tivic Health. However, GN Store Nord is 3.72 times less risky than Tivic Health. It trades about 0.0 of its potential returns per unit of risk. Tivic Health Systems is currently generating about -0.06 per unit of risk. If you would invest 6,872 in GN Store Nord on August 30, 2024 and sell it today you would lose (1,172) from holding GN Store Nord or give up 17.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
GN Store Nord vs. Tivic Health Systems
Performance |
| Timeline |
| GN Store Nord |
| Tivic Health Systems |
GN Store and Tivic Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GN Store and Tivic Health
The main advantage of trading using opposite GN Store and Tivic Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GN Store position performs unexpectedly, Tivic Health 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 Tivic Health will offset losses from the drop in Tivic Health's long position.| GN Store vs. Demant AS ADR | GN Store vs. Sonova Holding AG | GN Store vs. GN Store Nord | GN Store vs. Bone Biologics Corp |
| Tivic Health vs. Bluejay Diagnostics | Tivic Health vs. Heart Test Laboratories | Tivic Health vs. Nuwellis | Tivic Health vs. Bone Biologics Corp |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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