Correlation Between Hyperfine and MaxCyte
Can any of the company-specific risk be diversified away by investing in both Hyperfine and MaxCyte 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 MaxCyte into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hyperfine and MaxCyte, you can compare the effects of market volatilities on Hyperfine and MaxCyte 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 MaxCyte. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hyperfine and MaxCyte.
Diversification Opportunities for Hyperfine and MaxCyte
Very weak diversification
The 3 months correlation between Hyperfine and MaxCyte is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Hyperfine and MaxCyte in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MaxCyte 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 MaxCyte. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MaxCyte has no effect on the direction of Hyperfine i.e., Hyperfine and MaxCyte go up and down completely randomly.
Pair Corralation between Hyperfine and MaxCyte
Given the investment horizon of 90 days Hyperfine is expected to under-perform the MaxCyte. In addition to that, Hyperfine is 1.3 times more volatile than MaxCyte. It trades about -0.01 of its total potential returns per unit of risk. MaxCyte is currently generating about -0.01 per unit of volatility. If you would invest 491.00 in MaxCyte on September 2, 2024 and sell it today you would lose (136.00) from holding MaxCyte or give up 27.7% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hyperfine vs. MaxCyte
Performance |
| Timeline |
| Hyperfine |
| MaxCyte |
Hyperfine and MaxCyte Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hyperfine and MaxCyte
The main advantage of trading using opposite Hyperfine and MaxCyte positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hyperfine position performs unexpectedly, MaxCyte 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 MaxCyte will offset losses from the drop in MaxCyte's long position.| Hyperfine vs. Neuropace | Hyperfine vs. Orthopediatrics Corp | Hyperfine vs. Anika Therapeutics | Hyperfine vs. PAVmed Inc |
| MaxCyte vs. Sight Sciences | MaxCyte vs. CVRx Inc | MaxCyte vs. Neuropace | MaxCyte vs. Rapid Micro Biosystems |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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