Correlation Between Pulmonx Corp and Procept Biorobotics
Can any of the company-specific risk be diversified away by investing in both Pulmonx Corp and Procept Biorobotics 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 Procept Biorobotics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pulmonx Corp and Procept Biorobotics Corp, you can compare the effects of market volatilities on Pulmonx Corp and Procept Biorobotics 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 Procept Biorobotics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pulmonx Corp and Procept Biorobotics.
Diversification Opportunities for Pulmonx Corp and Procept Biorobotics
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Pulmonx and Procept is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Pulmonx Corp and Procept Biorobotics Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Procept Biorobotics Corp 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 Procept Biorobotics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Procept Biorobotics Corp has no effect on the direction of Pulmonx Corp i.e., Pulmonx Corp and Procept Biorobotics go up and down completely randomly.
Pair Corralation between Pulmonx Corp and Procept Biorobotics
Given the investment horizon of 90 days Pulmonx Corp is expected to generate 1.62 times more return on investment than Procept Biorobotics. However, Pulmonx Corp is 1.62 times more volatile than Procept Biorobotics Corp. It trades about 0.05 of its potential returns per unit of risk. Procept Biorobotics Corp is currently generating about 0.07 per unit of risk. If you would invest 627.00 in Pulmonx Corp on September 2, 2024 and sell it today you would earn a total of 18.00 from holding Pulmonx Corp or generate 2.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pulmonx Corp vs. Procept Biorobotics Corp
Performance |
| Timeline |
| Pulmonx Corp |
| Procept Biorobotics Corp |
Pulmonx Corp and Procept Biorobotics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pulmonx Corp and Procept Biorobotics
The main advantage of trading using opposite Pulmonx Corp and Procept Biorobotics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pulmonx Corp position performs unexpectedly, Procept Biorobotics 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 Procept Biorobotics will offset losses from the drop in Procept Biorobotics' long position.| Pulmonx Corp vs. Iradimed Co | Pulmonx Corp vs. Orthofix Medical | Pulmonx Corp vs. Neuropace | Pulmonx Corp vs. Integer Holdings Corp |
| Procept Biorobotics vs. Orthopediatrics Corp | Procept Biorobotics vs. Neuropace | Procept Biorobotics vs. Pulmonx Corp | Procept Biorobotics vs. SurModics |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |