Correlation Between Outset Medical and Thermogenesis Holdings
Can any of the company-specific risk be diversified away by investing in both Outset Medical and Thermogenesis Holdings 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 Thermogenesis Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Outset Medical and Thermogenesis Holdings, you can compare the effects of market volatilities on Outset Medical and Thermogenesis Holdings 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 Thermogenesis Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Outset Medical and Thermogenesis Holdings.
Diversification Opportunities for Outset Medical and Thermogenesis Holdings
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Outset and Thermogenesis is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Outset Medical and Thermogenesis Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thermogenesis Holdings 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 Thermogenesis Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thermogenesis Holdings has no effect on the direction of Outset Medical i.e., Outset Medical and Thermogenesis Holdings go up and down completely randomly.
Pair Corralation between Outset Medical and Thermogenesis Holdings
Allowing for the 90-day total investment horizon Outset Medical is expected to generate 0.75 times more return on investment than Thermogenesis Holdings. However, Outset Medical is 1.33 times less risky than Thermogenesis Holdings. It trades about -0.04 of its potential returns per unit of risk. Thermogenesis Holdings is currently generating about -0.03 per unit of risk. If you would invest 2,599 in Outset Medical on September 12, 2024 and sell it today you would lose (2,470) from holding Outset Medical or give up 95.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 75.35% |
| Values | Daily Returns |
Outset Medical vs. Thermogenesis Holdings
Performance |
| Timeline |
| Outset Medical |
| Thermogenesis Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Outset Medical and Thermogenesis Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Outset Medical and Thermogenesis Holdings
The main advantage of trading using opposite Outset Medical and Thermogenesis Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Outset Medical position performs unexpectedly, Thermogenesis Holdings 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 Thermogenesis Holdings will offset losses from the drop in Thermogenesis Holdings' long position.| Outset Medical vs. Inari Medical | Outset Medical vs. Clearpoint Neuro | Outset Medical vs. Inspire Medical Systems | Outset Medical vs. Nevro Corp |
| Thermogenesis Holdings vs. Tivic Health Systems | Thermogenesis Holdings vs. Bluejay Diagnostics | Thermogenesis Holdings vs. Heart Test Laboratories | Thermogenesis Holdings vs. Nuwellis |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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