Correlation Between Pulmonx Corp and Apyx Medical
Can any of the company-specific risk be diversified away by investing in both Pulmonx 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 Pulmonx 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 Pulmonx Corp and Apyx Medical, you can compare the effects of market volatilities on Pulmonx 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 Pulmonx Corp with a short position of Apyx Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pulmonx Corp and Apyx Medical.
Diversification Opportunities for Pulmonx Corp and Apyx Medical
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Pulmonx and Apyx is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Pulmonx Corp and Apyx Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apyx Medical and Pulmonx 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 Pulmonx 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 Pulmonx Corp i.e., Pulmonx Corp and Apyx Medical go up and down completely randomly.
Pair Corralation between Pulmonx Corp and Apyx Medical
Given the investment horizon of 90 days Pulmonx Corp is expected to generate 1.37 times less return on investment than Apyx Medical. But when comparing it to its historical volatility, Pulmonx Corp is 1.55 times less risky than Apyx Medical. It trades about 0.02 of its potential returns per unit of risk. 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 |
Pulmonx Corp vs. Apyx Medical
Performance |
| Timeline |
| Pulmonx Corp |
| Apyx Medical |
Pulmonx Corp and Apyx Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pulmonx Corp and Apyx Medical
The main advantage of trading using opposite Pulmonx Corp and Apyx Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pulmonx 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.| Pulmonx Corp vs. Iradimed Co | Pulmonx Corp vs. Orthofix Medical | Pulmonx Corp vs. Neuropace | Pulmonx Corp vs. Integer Holdings Corp |
| 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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