Correlation Between NuVasive and CONMED
Can any of the company-specific risk be diversified away by investing in both NuVasive and CONMED 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 NuVasive and CONMED into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NuVasive and CONMED, you can compare the effects of market volatilities on NuVasive and CONMED 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 NuVasive with a short position of CONMED. Check out your portfolio center. Please also check ongoing floating volatility patterns of NuVasive and CONMED.
Diversification Opportunities for NuVasive and CONMED
Very good diversification
The 3 months correlation between NuVasive and CONMED is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding NuVasive and CONMED in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CONMED and NuVasive 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 NuVasive are associated (or correlated) with CONMED. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CONMED has no effect on the direction of NuVasive i.e., NuVasive and CONMED go up and down completely randomly.
Pair Corralation between NuVasive and CONMED
If you would invest 7,077 in CONMED on November 2, 2024 and sell it today you would earn a total of 9.00 from holding CONMED or generate 0.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 0.97% |
| Values | Daily Returns |
NuVasive vs. CONMED
Performance |
| Timeline |
| NuVasive |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| CONMED |
NuVasive and CONMED Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NuVasive and CONMED
The main advantage of trading using opposite NuVasive and CONMED positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NuVasive position performs unexpectedly, CONMED 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 CONMED will offset losses from the drop in CONMED's long position.The idea behind NuVasive and CONMED 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.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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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