Correlation Between Myomo and Rapid Micro
Can any of the company-specific risk be diversified away by investing in both Myomo and Rapid Micro 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 Myomo and Rapid Micro into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Myomo Inc and Rapid Micro Biosystems, you can compare the effects of market volatilities on Myomo and Rapid Micro 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 Myomo with a short position of Rapid Micro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Myomo and Rapid Micro.
Diversification Opportunities for Myomo and Rapid Micro
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Myomo and Rapid is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Myomo Inc and Rapid Micro Biosystems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rapid Micro Biosystems and Myomo 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 Myomo Inc are associated (or correlated) with Rapid Micro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rapid Micro Biosystems has no effect on the direction of Myomo i.e., Myomo and Rapid Micro go up and down completely randomly.
Pair Corralation between Myomo and Rapid Micro
Considering the 90-day investment horizon Myomo Inc is expected to generate 1.56 times more return on investment than Rapid Micro. However, Myomo is 1.56 times more volatile than Rapid Micro Biosystems. It trades about 0.1 of its potential returns per unit of risk. Rapid Micro Biosystems is currently generating about -0.01 per unit of risk. If you would invest 61.00 in Myomo Inc on September 3, 2024 and sell it today you would earn a total of 501.00 from holding Myomo Inc or generate 821.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Myomo Inc vs. Rapid Micro Biosystems
Performance |
| Timeline |
| Myomo Inc |
| Rapid Micro Biosystems |
Myomo and Rapid Micro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Myomo and Rapid Micro
The main advantage of trading using opposite Myomo and Rapid Micro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Myomo position performs unexpectedly, Rapid Micro 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 Rapid Micro will offset losses from the drop in Rapid Micro's long position.| Myomo vs. SINTX Technologies | Myomo vs. ReShape Lifesciences | Myomo vs. Bone Biologics Corp | Myomo vs. Tivic Health Systems |
| Rapid Micro vs. Rxsight | Rapid Micro vs. Axogen Inc | Rapid Micro vs. Treace Medical Concepts | Rapid Micro 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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