Correlation Between Pulmonx Corp and Profound Medical
Can any of the company-specific risk be diversified away by investing in both Pulmonx Corp and Profound 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 Profound 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 Profound Medical Corp, you can compare the effects of market volatilities on Pulmonx Corp and Profound 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 Profound Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pulmonx Corp and Profound Medical.
Diversification Opportunities for Pulmonx Corp and Profound Medical
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Pulmonx and Profound is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Pulmonx Corp and Profound Medical Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Profound Medical 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 Profound Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Profound Medical Corp has no effect on the direction of Pulmonx Corp i.e., Pulmonx Corp and Profound Medical go up and down completely randomly.
Pair Corralation between Pulmonx Corp and Profound Medical
Given the investment horizon of 90 days Pulmonx Corp is expected to generate 2.35 times less return on investment than Profound Medical. In addition to that, Pulmonx Corp is 1.07 times more volatile than Profound Medical Corp. It trades about 0.05 of its total potential returns per unit of risk. Profound Medical Corp is currently generating about 0.13 per unit of volatility. If you would invest 735.00 in Profound Medical Corp on September 2, 2024 and sell it today you would earn a total of 77.00 from holding Profound Medical Corp or generate 10.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pulmonx Corp vs. Profound Medical Corp
Performance |
| Timeline |
| Pulmonx Corp |
| Profound Medical Corp |
Pulmonx Corp and Profound Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pulmonx Corp and Profound Medical
The main advantage of trading using opposite Pulmonx Corp and Profound Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pulmonx Corp position performs unexpectedly, Profound 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 Profound Medical will offset losses from the drop in Profound Medical's long position.| Pulmonx Corp vs. Iradimed Co | Pulmonx Corp vs. Orthofix Medical | Pulmonx Corp vs. Neuropace | Pulmonx Corp vs. Integer Holdings Corp |
| Profound Medical vs. Si Bone | Profound Medical vs. Sight Sciences | Profound Medical vs. Nevro Corp | Profound Medical 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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