Correlation Between Outset Medical and ALLURION TECHNOLOGIES
Can any of the company-specific risk be diversified away by investing in both Outset Medical and ALLURION TECHNOLOGIES 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 Outset Medical and ALLURION TECHNOLOGIES into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Outset Medical and ALLURION TECHNOLOGIES INC, you can compare the effects of market volatilities on Outset Medical and ALLURION TECHNOLOGIES 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 Outset Medical with a short position of ALLURION TECHNOLOGIES. Check out your portfolio center. Please also check ongoing floating volatility patterns of Outset Medical and ALLURION TECHNOLOGIES.
Diversification Opportunities for Outset Medical and ALLURION TECHNOLOGIES
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Outset and ALLURION is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Outset Medical and ALLURION TECHNOLOGIES INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ALLURION TECHNOLOGIES INC and Outset Medical 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 Outset Medical are associated (or correlated) with ALLURION TECHNOLOGIES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ALLURION TECHNOLOGIES INC has no effect on the direction of Outset Medical i.e., Outset Medical and ALLURION TECHNOLOGIES go up and down completely randomly.
Pair Corralation between Outset Medical and ALLURION TECHNOLOGIES
If you would invest 75.00 in Outset Medical on September 20, 2024 and sell it today you would earn a total of 26.00 from holding Outset Medical or generate 34.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Outset Medical vs. ALLURION TECHNOLOGIES INC
Performance |
| Timeline |
| Outset Medical |
| ALLURION TECHNOLOGIES INC |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Outset Medical and ALLURION TECHNOLOGIES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Outset Medical and ALLURION TECHNOLOGIES
The main advantage of trading using opposite Outset Medical and ALLURION TECHNOLOGIES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Outset Medical position performs unexpectedly, ALLURION TECHNOLOGIES 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 ALLURION TECHNOLOGIES will offset losses from the drop in ALLURION TECHNOLOGIES's long position.The idea behind Outset Medical and ALLURION TECHNOLOGIES INC 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.| ALLURION TECHNOLOGIES vs. Edwards Lifesciences Corp | ALLURION TECHNOLOGIES vs. Outset Medical | ALLURION TECHNOLOGIES vs. Venus Concept | ALLURION TECHNOLOGIES vs. DexCom Inc |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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