Correlation Between Orthopediatrics Corp and Apyx Medical
Can any of the company-specific risk be diversified away by investing in both Orthopediatrics Corp 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 Orthopediatrics Corp and Apyx Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Orthopediatrics Corp and Apyx Medical, you can compare the effects of market volatilities on Orthopediatrics Corp 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 Orthopediatrics Corp with a short position of Apyx Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Orthopediatrics Corp and Apyx Medical.
Diversification Opportunities for Orthopediatrics Corp and Apyx Medical
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Orthopediatrics and Apyx is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Orthopediatrics Corp and Apyx Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apyx Medical and Orthopediatrics Corp 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 Orthopediatrics Corp 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 has no effect on the direction of Orthopediatrics Corp i.e., Orthopediatrics Corp and Apyx Medical go up and down completely randomly.
Pair Corralation between Orthopediatrics Corp and Apyx Medical
Given the investment horizon of 90 days Orthopediatrics Corp is expected to under-perform the Apyx Medical. But the stock apears to be less risky and, when comparing its historical volatility, Orthopediatrics Corp is 2.03 times less risky than Apyx Medical. The stock trades about -0.01 of its potential returns per unit of risk. The Apyx Medical is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 187.00 in Apyx Medical on August 24, 2024 and sell it today you would lose (42.00) from holding Apyx Medical or give up 22.46% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Orthopediatrics Corp vs. Apyx Medical
Performance |
| Timeline |
| Orthopediatrics Corp |
| Apyx Medical |
Orthopediatrics Corp and Apyx Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Orthopediatrics Corp and Apyx Medical
The main advantage of trading using opposite Orthopediatrics Corp and Apyx Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Orthopediatrics Corp 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.| Orthopediatrics Corp vs. Orthofix Medical | Orthopediatrics Corp vs. Sight Sciences | Orthopediatrics Corp vs. Neuropace | Orthopediatrics Corp vs. CVRx Inc |
| Apyx Medical vs. Neuropace | Apyx Medical vs. Inogen Inc | Apyx Medical vs. SurModics | Apyx Medical vs. Pulmonx 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Stocks Directory Find actively traded stocks across global markets | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |