Correlation Between LifeMD and Heartbeam
Can any of the company-specific risk be diversified away by investing in both LifeMD and Heartbeam 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 LifeMD and Heartbeam into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LifeMD Inc and Heartbeam, you can compare the effects of market volatilities on LifeMD and Heartbeam 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 LifeMD with a short position of Heartbeam. Check out your portfolio center. Please also check ongoing floating volatility patterns of LifeMD and Heartbeam.
Diversification Opportunities for LifeMD and Heartbeam
Weak diversification
The 3 months correlation between LifeMD and Heartbeam is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding LifeMD Inc and Heartbeam in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Heartbeam and LifeMD 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 LifeMD Inc are associated (or correlated) with Heartbeam. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Heartbeam has no effect on the direction of LifeMD i.e., LifeMD and Heartbeam go up and down completely randomly.
Pair Corralation between LifeMD and Heartbeam
Given the investment horizon of 90 days LifeMD is expected to generate 10.11 times less return on investment than Heartbeam. But when comparing it to its historical volatility, LifeMD Inc is 1.0 times less risky than Heartbeam. It trades about 0.0 of its potential returns per unit of risk. Heartbeam is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 275.00 in Heartbeam on September 1, 2024 and sell it today you would earn a total of 31.00 from holding Heartbeam or generate 11.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
LifeMD Inc vs. Heartbeam
Performance |
| Timeline |
| LifeMD Inc |
| Heartbeam |
LifeMD and Heartbeam Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LifeMD and Heartbeam
The main advantage of trading using opposite LifeMD and Heartbeam positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LifeMD position performs unexpectedly, Heartbeam 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 Heartbeam will offset losses from the drop in Heartbeam's long position.| LifeMD vs. Streamline Health Solutions | LifeMD vs. HealthStream | LifeMD vs. National Research Corp | LifeMD vs. Privia Health Group |
| Heartbeam vs. Profound Medical Corp | Heartbeam vs. Si Bone | Heartbeam vs. Nevro Corp | Heartbeam vs. Paragon 28 |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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