Correlation Between Profound Medical and Artivion
Can any of the company-specific risk be diversified away by investing in both Profound Medical and Artivion 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 Profound Medical and Artivion into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Profound Medical Corp and Artivion, you can compare the effects of market volatilities on Profound Medical and Artivion 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 Profound Medical with a short position of Artivion. Check out your portfolio center. Please also check ongoing floating volatility patterns of Profound Medical and Artivion.
Diversification Opportunities for Profound Medical and Artivion
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Profound and Artivion is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Profound Medical Corp and Artivion in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Artivion and Profound 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 Profound Medical Corp are associated (or correlated) with Artivion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Artivion has no effect on the direction of Profound Medical i.e., Profound Medical and Artivion go up and down completely randomly.
Pair Corralation between Profound Medical and Artivion
Given the investment horizon of 90 days Profound Medical is expected to generate 22.51 times less return on investment than Artivion. In addition to that, Profound Medical is 1.93 times more volatile than Artivion. It trades about 0.0 of its total potential returns per unit of risk. Artivion is currently generating about 0.19 per unit of volatility. If you would invest 2,746 in Artivion on September 3, 2024 and sell it today you would earn a total of 206.00 from holding Artivion or generate 7.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Profound Medical Corp vs. Artivion
Performance |
| Timeline |
| Profound Medical Corp |
| Artivion |
Profound Medical and Artivion Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Profound Medical and Artivion
The main advantage of trading using opposite Profound Medical and Artivion positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Profound Medical position performs unexpectedly, Artivion 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 Artivion will offset losses from the drop in Artivion's long position.| Profound Medical vs. Si Bone | Profound Medical vs. Sight Sciences | Profound Medical vs. Nevro Corp | Profound Medical vs. Paragon 28 |
| Artivion vs. Anika Therapeutics | Artivion vs. Sight Sciences | Artivion vs. Orthofix Medical | Artivion vs. Avanos Medical |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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