Correlation Between Myomo and Sonida Senior
Can any of the company-specific risk be diversified away by investing in both Myomo and Sonida Senior 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 Sonida Senior into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Myomo Inc and Sonida Senior Living, you can compare the effects of market volatilities on Myomo and Sonida Senior 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 Sonida Senior. Check out your portfolio center. Please also check ongoing floating volatility patterns of Myomo and Sonida Senior.
Diversification Opportunities for Myomo and Sonida Senior
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Myomo and Sonida is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Myomo Inc and Sonida Senior Living in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sonida Senior Living 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 Sonida Senior. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sonida Senior Living has no effect on the direction of Myomo i.e., Myomo and Sonida Senior go up and down completely randomly.
Pair Corralation between Myomo and Sonida Senior
Considering the 90-day investment horizon Myomo Inc is expected to generate 1.71 times more return on investment than Sonida Senior. However, Myomo is 1.71 times more volatile than Sonida Senior Living. It trades about 0.19 of its potential returns per unit of risk. Sonida Senior Living is currently generating about -0.03 per unit of risk. If you would invest 374.00 in Myomo Inc on November 1, 2024 and sell it today you would earn a total of 218.00 from holding Myomo Inc or generate 58.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Myomo Inc vs. Sonida Senior Living
Performance |
| Timeline |
| Myomo Inc |
| Sonida Senior Living |
Myomo and Sonida Senior Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Myomo and Sonida Senior
The main advantage of trading using opposite Myomo and Sonida Senior positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Myomo position performs unexpectedly, Sonida Senior 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 Sonida Senior will offset losses from the drop in Sonida Senior's long position.| Myomo vs. SINTX Technologies | Myomo vs. ReShape Lifesciences | Myomo vs. Bone Biologics Corp | Myomo vs. Tivic Health Systems |
| Sonida Senior vs. Select Medical Holdings | Sonida Senior vs. Encompass Health Corp | Sonida Senior vs. Pennant Group | Sonida Senior vs. InnovAge Holding 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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