Correlation Between Rapid Micro and CONMED
Can any of the company-specific risk be diversified away by investing in both Rapid Micro and CONMED 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 Rapid Micro and CONMED into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Rapid Micro Biosystems and CONMED, you can compare the effects of market volatilities on Rapid Micro and CONMED 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 Rapid Micro with a short position of CONMED. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rapid Micro and CONMED.
Diversification Opportunities for Rapid Micro and CONMED
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Rapid and CONMED is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Rapid Micro Biosystems and CONMED in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CONMED and Rapid Micro 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 Rapid Micro Biosystems are associated (or correlated) with CONMED. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CONMED has no effect on the direction of Rapid Micro i.e., Rapid Micro and CONMED go up and down completely randomly.
Pair Corralation between Rapid Micro and CONMED
Given the investment horizon of 90 days Rapid Micro Biosystems is expected to under-perform the CONMED. In addition to that, Rapid Micro is 1.73 times more volatile than CONMED. It trades about 0.0 of its total potential returns per unit of risk. CONMED is currently generating about 0.0 per unit of volatility. If you would invest 8,751 in CONMED on August 24, 2024 and sell it today you would lose (1,260) from holding CONMED or give up 14.4% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rapid Micro Biosystems vs. CONMED
Performance |
| Timeline |
| Rapid Micro Biosystems |
| CONMED |
Rapid Micro and CONMED Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rapid Micro and CONMED
The main advantage of trading using opposite Rapid Micro and CONMED positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rapid Micro position performs unexpectedly, CONMED 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 CONMED will offset losses from the drop in CONMED's long position.| Rapid Micro vs. Rxsight | Rapid Micro vs. Axogen Inc | Rapid Micro vs. Treace Medical Concepts | Rapid Micro vs. Pulmonx Corp |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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