Correlation Between Penumbra and Shockwave Medical
Can any of the company-specific risk be diversified away by investing in both Penumbra and Shockwave Medical 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 Penumbra and Shockwave Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Penumbra and Shockwave Medical, you can compare the effects of market volatilities on Penumbra and Shockwave Medical 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 Penumbra with a short position of Shockwave Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Penumbra and Shockwave Medical.
Diversification Opportunities for Penumbra and Shockwave Medical
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Penumbra and Shockwave is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Penumbra and Shockwave Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shockwave Medical and Penumbra 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 Penumbra are associated (or correlated) with Shockwave Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shockwave Medical has no effect on the direction of Penumbra i.e., Penumbra and Shockwave Medical go up and down completely randomly.
Pair Corralation between Penumbra and Shockwave Medical
If you would invest 20,497 in Penumbra on November 2, 2024 and sell it today you would earn a total of 6,403 from holding Penumbra or generate 31.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.97% |
| Values | Daily Returns |
Penumbra vs. Shockwave Medical
Performance |
| Timeline |
| Penumbra |
| Shockwave Medical |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Penumbra and Shockwave Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Penumbra and Shockwave Medical
The main advantage of trading using opposite Penumbra and Shockwave Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Penumbra position performs unexpectedly, Shockwave Medical 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 Shockwave Medical will offset losses from the drop in Shockwave Medical's long position.| Penumbra vs. Insulet | Penumbra vs. TransMedics Group | Penumbra vs. Masimo | Penumbra vs. Inspire Medical Systems |
| Shockwave Medical vs. Inari Medical | Shockwave Medical vs. Outset Medical | Shockwave Medical vs. Clearpoint Neuro | Shockwave Medical vs. Inspire Medical Systems |
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.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |