Correlation Between Pulmonx Corp and Varex Imaging
Can any of the company-specific risk be diversified away by investing in both Pulmonx Corp and Varex Imaging 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 Varex Imaging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pulmonx Corp and Varex Imaging Corp, you can compare the effects of market volatilities on Pulmonx Corp and Varex Imaging 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 Varex Imaging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pulmonx Corp and Varex Imaging.
Diversification Opportunities for Pulmonx Corp and Varex Imaging
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Pulmonx and Varex is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Pulmonx Corp and Varex Imaging Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Varex Imaging 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 Varex Imaging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Varex Imaging Corp has no effect on the direction of Pulmonx Corp i.e., Pulmonx Corp and Varex Imaging go up and down completely randomly.
Pair Corralation between Pulmonx Corp and Varex Imaging
Given the investment horizon of 90 days Pulmonx Corp is expected to generate 2.52 times less return on investment than Varex Imaging. In addition to that, Pulmonx Corp is 1.94 times more volatile than Varex Imaging Corp. It trades about 0.08 of its total potential returns per unit of risk. Varex Imaging Corp is currently generating about 0.39 per unit of volatility. If you would invest 1,315 in Varex Imaging Corp on August 28, 2024 and sell it today you would earn a total of 324.00 from holding Varex Imaging Corp or generate 24.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pulmonx Corp vs. Varex Imaging Corp
Performance |
| Timeline |
| Pulmonx Corp |
| Varex Imaging Corp |
Pulmonx Corp and Varex Imaging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pulmonx Corp and Varex Imaging
The main advantage of trading using opposite Pulmonx Corp and Varex Imaging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pulmonx Corp position performs unexpectedly, Varex Imaging 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 Varex Imaging will offset losses from the drop in Varex Imaging's long position.| Pulmonx Corp vs. Iradimed Co | Pulmonx Corp vs. Orthofix Medical | Pulmonx Corp vs. Neuropace | Pulmonx Corp vs. Integer Holdings Corp |
| Varex Imaging vs. Sight Sciences | Varex Imaging vs. Apyx Medical | Varex Imaging vs. Si Bone | Varex Imaging vs. Iradimed Co |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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