Correlation Between Outset Medical and Hyperfine
Can any of the company-specific risk be diversified away by investing in both Outset Medical and Hyperfine 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 Hyperfine into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Outset Medical and Hyperfine, you can compare the effects of market volatilities on Outset Medical and Hyperfine 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 Hyperfine. Check out your portfolio center. Please also check ongoing floating volatility patterns of Outset Medical and Hyperfine.
Diversification Opportunities for Outset Medical and Hyperfine
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Outset and Hyperfine is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Outset Medical and Hyperfine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hyperfine 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 Hyperfine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hyperfine has no effect on the direction of Outset Medical i.e., Outset Medical and Hyperfine go up and down completely randomly.
Pair Corralation between Outset Medical and Hyperfine
Allowing for the 90-day total investment horizon Outset Medical is expected to under-perform the Hyperfine. In addition to that, Outset Medical is 1.28 times more volatile than Hyperfine. It trades about -0.06 of its total potential returns per unit of risk. Hyperfine is currently generating about 0.02 per unit of volatility. If you would invest 123.00 in Hyperfine on September 2, 2024 and sell it today you would lose (22.00) from holding Hyperfine or give up 17.89% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Outset Medical vs. Hyperfine
Performance |
| Timeline |
| Outset Medical |
| Hyperfine |
Outset Medical and Hyperfine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Outset Medical and Hyperfine
The main advantage of trading using opposite Outset Medical and Hyperfine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Outset Medical position performs unexpectedly, Hyperfine 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 Hyperfine will offset losses from the drop in Hyperfine's long position.| Outset Medical vs. Inari Medical | Outset Medical vs. Clearpoint Neuro | Outset Medical vs. Inspire Medical Systems | Outset Medical vs. Nevro Corp |
| Hyperfine vs. Neuropace | Hyperfine vs. Orthopediatrics Corp | Hyperfine vs. Anika Therapeutics | Hyperfine vs. PAVmed 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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