Correlation Between Nanomix and Artivion
Can any of the company-specific risk be diversified away by investing in both Nanomix and Artivion 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 Nanomix and Artivion into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nanomix and Artivion, you can compare the effects of market volatilities on Nanomix and Artivion 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 Nanomix with a short position of Artivion. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanomix and Artivion.
Diversification Opportunities for Nanomix and Artivion
Poor diversification
The 3 months correlation between Nanomix and Artivion is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Nanomix and Artivion in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Artivion and Nanomix 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 Nanomix are associated (or correlated) with Artivion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Artivion has no effect on the direction of Nanomix i.e., Nanomix and Artivion go up and down completely randomly.
Pair Corralation between Nanomix and Artivion
Given the investment horizon of 90 days Nanomix is expected to generate 5.71 times more return on investment than Artivion. However, Nanomix is 5.71 times more volatile than Artivion. It trades about 0.02 of its potential returns per unit of risk. Artivion is currently generating about 0.08 per unit of risk. If you would invest 14.00 in Nanomix on September 12, 2024 and sell it today you would lose (13.98) from holding Nanomix or give up 99.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Nanomix vs. Artivion
Performance |
| Timeline |
| Nanomix |
| Artivion |
Nanomix and Artivion Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nanomix and Artivion
The main advantage of trading using opposite Nanomix and Artivion positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanomix position performs unexpectedly, Artivion 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 Artivion will offset losses from the drop in Artivion's long position.| Nanomix vs. Abbott Laboratories | Nanomix vs. Stryker | Nanomix vs. Boston Scientific Corp | Nanomix vs. Medtronic PLC |
| Artivion vs. Anika Therapeutics | Artivion vs. Sight Sciences | Artivion vs. Orthofix Medical | Artivion vs. Avanos Medical |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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