Correlation Between Movano and STRATA Skin
Can any of the company-specific risk be diversified away by investing in both Movano and STRATA Skin 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 Movano and STRATA Skin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Movano Inc and STRATA Skin Sciences, you can compare the effects of market volatilities on Movano and STRATA Skin 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 Movano with a short position of STRATA Skin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Movano and STRATA Skin.
Diversification Opportunities for Movano and STRATA Skin
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Movano and STRATA is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Movano Inc and STRATA Skin Sciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STRATA Skin Sciences and Movano 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 Movano Inc are associated (or correlated) with STRATA Skin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STRATA Skin Sciences has no effect on the direction of Movano i.e., Movano and STRATA Skin go up and down completely randomly.
Pair Corralation between Movano and STRATA Skin
Given the investment horizon of 90 days Movano Inc is expected to under-perform the STRATA Skin. But the stock apears to be less risky and, when comparing its historical volatility, Movano Inc is 1.19 times less risky than STRATA Skin. The stock trades about -0.05 of its potential returns per unit of risk. The STRATA Skin Sciences is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 820.00 in STRATA Skin Sciences on August 28, 2024 and sell it today you would lose (526.00) from holding STRATA Skin Sciences or give up 64.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Movano Inc vs. STRATA Skin Sciences
Performance |
| Timeline |
| Movano Inc |
| STRATA Skin Sciences |
Movano and STRATA Skin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Movano and STRATA Skin
The main advantage of trading using opposite Movano and STRATA Skin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Movano position performs unexpectedly, STRATA Skin 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 STRATA Skin will offset losses from the drop in STRATA Skin's long position.The idea behind Movano Inc and STRATA Skin Sciences pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| STRATA Skin vs. Axogen Inc | STRATA Skin vs. Ainos Inc | STRATA Skin vs. LENSAR Inc | STRATA Skin vs. Nexalin Technology |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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