Correlation Between Rapid Micro and Pulmonx Corp
Can any of the company-specific risk be diversified away by investing in both Rapid Micro and Pulmonx Corp 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 Pulmonx Corp 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 Pulmonx Corp, you can compare the effects of market volatilities on Rapid Micro and Pulmonx Corp 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 Pulmonx Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rapid Micro and Pulmonx Corp.
Diversification Opportunities for Rapid Micro and Pulmonx Corp
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Rapid and Pulmonx is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Rapid Micro Biosystems and Pulmonx Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pulmonx Corp 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 Pulmonx Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pulmonx Corp has no effect on the direction of Rapid Micro i.e., Rapid Micro and Pulmonx Corp go up and down completely randomly.
Pair Corralation between Rapid Micro and Pulmonx Corp
Given the investment horizon of 90 days Rapid Micro is expected to generate 2.12 times less return on investment than Pulmonx Corp. But when comparing it to its historical volatility, Rapid Micro Biosystems is 1.39 times less risky than Pulmonx Corp. It trades about 0.05 of its potential returns per unit of risk. Pulmonx Corp is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 621.00 in Pulmonx Corp on August 28, 2024 and sell it today you would earn a total of 40.00 from holding Pulmonx Corp or generate 6.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rapid Micro Biosystems vs. Pulmonx Corp
Performance |
| Timeline |
| Rapid Micro Biosystems |
| Pulmonx Corp |
Rapid Micro and Pulmonx Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rapid Micro and Pulmonx Corp
The main advantage of trading using opposite Rapid Micro and Pulmonx Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rapid Micro position performs unexpectedly, Pulmonx Corp 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 Pulmonx Corp will offset losses from the drop in Pulmonx Corp's long position.| Rapid Micro vs. Rxsight | Rapid Micro vs. Axogen Inc | Rapid Micro vs. Treace Medical Concepts | Rapid Micro vs. Pulmonx Corp |
| Pulmonx Corp vs. Iradimed Co | Pulmonx Corp vs. Orthofix Medical | Pulmonx Corp vs. Neuropace | Pulmonx Corp vs. Integer Holdings 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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