Correlation Between Helius Medical and SINTX Technologies
Can any of the company-specific risk be diversified away by investing in both Helius Medical and SINTX Technologies 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 Helius Medical and SINTX Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Helius Medical Technologies and SINTX Technologies, you can compare the effects of market volatilities on Helius Medical and SINTX Technologies 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 Helius Medical with a short position of SINTX Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Helius Medical and SINTX Technologies.
Diversification Opportunities for Helius Medical and SINTX Technologies
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Helius and SINTX is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Helius Medical Technologies and SINTX Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SINTX Technologies and Helius 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 Helius Medical Technologies are associated (or correlated) with SINTX Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SINTX Technologies has no effect on the direction of Helius Medical i.e., Helius Medical and SINTX Technologies go up and down completely randomly.
Pair Corralation between Helius Medical and SINTX Technologies
Given the investment horizon of 90 days Helius Medical is expected to generate 10.5 times less return on investment than SINTX Technologies. But when comparing it to its historical volatility, Helius Medical Technologies is 2.83 times less risky than SINTX Technologies. It trades about 0.04 of its potential returns per unit of risk. SINTX Technologies is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 326.00 in SINTX Technologies on August 29, 2024 and sell it today you would earn a total of 126.00 from holding SINTX Technologies or generate 38.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Helius Medical Technologies vs. SINTX Technologies
Performance |
| Timeline |
| Helius Medical Techn |
| SINTX Technologies |
Helius Medical and SINTX Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Helius Medical and SINTX Technologies
The main advantage of trading using opposite Helius Medical and SINTX Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Helius Medical position performs unexpectedly, SINTX Technologies 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 SINTX Technologies will offset losses from the drop in SINTX Technologies' long position.| Helius Medical vs. Nuwellis | Helius Medical vs. ReShape Lifesciences | Helius Medical vs. Bone Biologics Corp | Helius Medical vs. SINTX Technologies |
| SINTX Technologies vs. ReShape Lifesciences | SINTX Technologies vs. Bone Biologics Corp | SINTX Technologies vs. Tivic Health Systems | SINTX Technologies vs. Nuwellis |
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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