Correlation Between Helius Medical and Tenon Medical
Can any of the company-specific risk be diversified away by investing in both Helius Medical 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 Helius Medical and Tenon Medical 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 Tenon Medical, you can compare the effects of market volatilities on Helius Medical 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 Helius Medical with a short position of Tenon Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Helius Medical and Tenon Medical.
Diversification Opportunities for Helius Medical and Tenon Medical
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Helius and Tenon is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Helius Medical Technologies and Tenon Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tenon Medical 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 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 Helius Medical i.e., Helius Medical and Tenon Medical go up and down completely randomly.
Pair Corralation between Helius Medical and Tenon Medical
Given the investment horizon of 90 days Helius Medical Technologies is expected to generate 0.88 times more return on investment than Tenon Medical. However, Helius Medical Technologies is 1.14 times less risky than Tenon Medical. It trades about 0.04 of its potential returns per unit of risk. Tenon Medical is currently generating about -0.25 per unit of risk. If you would invest 48.00 in Helius Medical Technologies on August 29, 2024 and sell it today you would earn a total of 1.00 from holding Helius Medical Technologies or generate 2.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Helius Medical Technologies vs. Tenon Medical
Performance |
| Timeline |
| Helius Medical Techn |
| Tenon Medical |
Helius Medical and Tenon Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Helius Medical and Tenon Medical
The main advantage of trading using opposite Helius Medical and Tenon Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Helius Medical 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.| Helius Medical vs. Nuwellis | Helius Medical vs. ReShape Lifesciences | Helius Medical vs. Bone Biologics Corp | Helius Medical vs. SINTX Technologies |
| 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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