Correlation Between RA Medical and Helius Medical
Can any of the company-specific risk be diversified away by investing in both RA Medical and Helius 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 RA Medical and Helius Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between RA Medical Systems and Helius Medical Technologies, you can compare the effects of market volatilities on RA Medical and Helius 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 RA Medical with a short position of Helius Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of RA Medical and Helius Medical.
Diversification Opportunities for RA Medical and Helius Medical
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between RMED and Helius is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding RA Medical Systems and Helius Medical Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Helius Medical Techn and RA 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 RA Medical Systems are associated (or correlated) with Helius Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Helius Medical Techn has no effect on the direction of RA Medical i.e., RA Medical and Helius Medical go up and down completely randomly.
Pair Corralation between RA Medical and Helius Medical
If you would invest 48.00 in Helius Medical Technologies on August 29, 2024 and sell it today you would earn a total of 1.00 from holding Helius Medical Technologies or generate 2.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 4.55% |
| Values | Daily Returns |
RA Medical Systems vs. Helius Medical Technologies
Performance |
| Timeline |
| RA Medical Systems |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Helius Medical Techn |
RA Medical and Helius Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with RA Medical and Helius Medical
The main advantage of trading using opposite RA Medical and Helius Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if RA Medical position performs unexpectedly, Helius 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 Helius Medical will offset losses from the drop in Helius Medical's long position.| RA Medical vs. SINTX Technologies | RA Medical vs. ReShape Lifesciences | RA Medical vs. Bone Biologics Corp | RA Medical vs. Tivic Health Systems |
| Helius Medical vs. Nuwellis | Helius Medical vs. ReShape Lifesciences | Helius Medical vs. Bone Biologics Corp | Helius Medical vs. SINTX Technologies |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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