Correlation Between Avita Medical and NanoVibronix
Can any of the company-specific risk be diversified away by investing in both Avita Medical and NanoVibronix 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 Avita Medical and NanoVibronix into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Avita Medical and NanoVibronix, you can compare the effects of market volatilities on Avita Medical and NanoVibronix 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 Avita Medical with a short position of NanoVibronix. Check out your portfolio center. Please also check ongoing floating volatility patterns of Avita Medical and NanoVibronix.
Diversification Opportunities for Avita Medical and NanoVibronix
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Avita and NanoVibronix is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Avita Medical and NanoVibronix in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NanoVibronix and Avita 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 Avita Medical are associated (or correlated) with NanoVibronix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NanoVibronix has no effect on the direction of Avita Medical i.e., Avita Medical and NanoVibronix go up and down completely randomly.
Pair Corralation between Avita Medical and NanoVibronix
Given the investment horizon of 90 days Avita Medical is expected to generate 0.85 times more return on investment than NanoVibronix. However, Avita Medical is 1.18 times less risky than NanoVibronix. It trades about 0.04 of its potential returns per unit of risk. NanoVibronix is currently generating about 0.0 per unit of risk. If you would invest 929.00 in Avita Medical on September 21, 2024 and sell it today you would earn a total of 248.00 from holding Avita Medical or generate 26.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Avita Medical vs. NanoVibronix
Performance |
| Timeline |
| Avita Medical |
| NanoVibronix |
Avita Medical and NanoVibronix Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Avita Medical and NanoVibronix
The main advantage of trading using opposite Avita Medical and NanoVibronix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Avita Medical position performs unexpectedly, NanoVibronix 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 NanoVibronix will offset losses from the drop in NanoVibronix's long position.| Avita Medical vs. Clearpoint Neuro | Avita Medical vs. Sight Sciences | Avita Medical vs. Treace Medical Concepts | Avita Medical vs. Rxsight |
| NanoVibronix vs. Bone Biologics Corp | NanoVibronix vs. Bluejay Diagnostics | NanoVibronix vs. Vivos Therapeutics | NanoVibronix vs. Tivic Health 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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