Correlation Between Rapid Micro and RA Medical
Can any of the company-specific risk be diversified away by investing in both Rapid Micro and RA 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 Rapid Micro and RA Medical 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 RA Medical Systems, you can compare the effects of market volatilities on Rapid Micro and RA 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 Rapid Micro with a short position of RA Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rapid Micro and RA Medical.
Diversification Opportunities for Rapid Micro and RA Medical
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Rapid and RMED is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding Rapid Micro Biosystems and RA Medical Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RA Medical Systems 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 RA Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RA Medical Systems has no effect on the direction of Rapid Micro i.e., Rapid Micro and RA Medical go up and down completely randomly.
Pair Corralation between Rapid Micro and RA Medical
Given the investment horizon of 90 days Rapid Micro Biosystems is expected to generate 1.09 times more return on investment than RA Medical. However, Rapid Micro is 1.09 times more volatile than RA Medical Systems. It trades about 0.02 of its potential returns per unit of risk. RA Medical Systems is currently generating about -0.44 per unit of risk. If you would invest 101.00 in Rapid Micro Biosystems on August 31, 2024 and sell it today you would earn a total of 4.00 from holding Rapid Micro Biosystems or generate 3.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 8.56% |
| Values | Daily Returns |
Rapid Micro Biosystems vs. RA Medical Systems
Performance |
| Timeline |
| Rapid Micro Biosystems |
| RA Medical Systems |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Rapid Micro and RA Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rapid Micro and RA Medical
The main advantage of trading using opposite Rapid Micro and RA Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rapid Micro position performs unexpectedly, RA 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 RA Medical will offset losses from the drop in RA Medical's long position.| Rapid Micro vs. Rxsight | Rapid Micro vs. Axogen Inc | Rapid Micro vs. Treace Medical Concepts | Rapid Micro vs. Pulmonx Corp |
| RA Medical vs. SINTX Technologies | RA Medical vs. ReShape Lifesciences | RA Medical vs. Bone Biologics Corp | RA Medical 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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