Correlation Between Japan Medical and Apyx Medical
Can any of the company-specific risk be diversified away by investing in both Japan Medical and Apyx 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 Japan Medical and Apyx Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Japan Medical Dynamic and Apyx Medical Corp, you can compare the effects of market volatilities on Japan Medical and Apyx 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 Japan Medical with a short position of Apyx Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Japan Medical and Apyx Medical.
Diversification Opportunities for Japan Medical and Apyx Medical
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Japan and Apyx is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Japan Medical Dynamic and Apyx Medical Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apyx Medical Corp and Japan 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 Japan Medical Dynamic are associated (or correlated) with Apyx Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apyx Medical Corp has no effect on the direction of Japan Medical i.e., Japan Medical and Apyx Medical go up and down completely randomly.
Pair Corralation between Japan Medical and Apyx Medical
Assuming the 90 days horizon Japan Medical Dynamic is expected to under-perform the Apyx Medical. But the stock apears to be less risky and, when comparing its historical volatility, Japan Medical Dynamic is 3.97 times less risky than Apyx Medical. The stock trades about -0.17 of its potential returns per unit of risk. The Apyx Medical Corp is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 102.00 in Apyx Medical Corp on August 25, 2024 and sell it today you would earn a total of 33.00 from holding Apyx Medical Corp or generate 32.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Japan Medical Dynamic vs. Apyx Medical Corp
Performance |
| Timeline |
| Japan Medical Dynamic |
| Apyx Medical Corp |
Japan Medical and Apyx Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Japan Medical and Apyx Medical
The main advantage of trading using opposite Japan Medical and Apyx Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Japan Medical position performs unexpectedly, Apyx 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 Apyx Medical will offset losses from the drop in Apyx Medical's long position.| Japan Medical vs. Align Technology | Japan Medical vs. Superior Plus Corp | Japan Medical vs. NMI Holdings | Japan Medical vs. Origin Agritech |
| Apyx Medical vs. Apple Inc | Apyx Medical vs. Apple Inc | Apyx Medical vs. Apple Inc | Apyx Medical vs. Apple 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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