Correlation Between Hyperfine and Electromed
Can any of the company-specific risk be diversified away by investing in both Hyperfine and Electromed 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 Hyperfine and Electromed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hyperfine and Electromed, you can compare the effects of market volatilities on Hyperfine and Electromed 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 Hyperfine with a short position of Electromed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hyperfine and Electromed.
Diversification Opportunities for Hyperfine and Electromed
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hyperfine and Electromed is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Hyperfine and Electromed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Electromed and Hyperfine 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 Hyperfine are associated (or correlated) with Electromed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Electromed has no effect on the direction of Hyperfine i.e., Hyperfine and Electromed go up and down completely randomly.
Pair Corralation between Hyperfine and Electromed
Given the investment horizon of 90 days Hyperfine is expected to generate 7.33 times less return on investment than Electromed. In addition to that, Hyperfine is 1.18 times more volatile than Electromed. It trades about 0.06 of its total potential returns per unit of risk. Electromed is currently generating about 0.5 per unit of volatility. If you would invest 2,290 in Electromed on September 2, 2024 and sell it today you would earn a total of 788.00 from holding Electromed or generate 34.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hyperfine vs. Electromed
Performance |
| Timeline |
| Hyperfine |
| Electromed |
Hyperfine and Electromed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hyperfine and Electromed
The main advantage of trading using opposite Hyperfine and Electromed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hyperfine position performs unexpectedly, Electromed 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 Electromed will offset losses from the drop in Electromed's long position.| Hyperfine vs. Neuropace | Hyperfine vs. Orthopediatrics Corp | Hyperfine vs. Anika Therapeutics | Hyperfine vs. PAVmed Inc |
| Electromed vs. Profound Medical Corp | Electromed vs. Si Bone | Electromed vs. Nevro Corp | Electromed vs. Orthopediatrics 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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