Correlation Between Rapid Micro and Vapotherm
Can any of the company-specific risk be diversified away by investing in both Rapid Micro and Vapotherm 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 Vapotherm 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 Vapotherm, you can compare the effects of market volatilities on Rapid Micro and Vapotherm 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 Vapotherm. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rapid Micro and Vapotherm.
Diversification Opportunities for Rapid Micro and Vapotherm
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Rapid and Vapotherm is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Rapid Micro Biosystems and Vapotherm in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vapotherm 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 Vapotherm. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vapotherm has no effect on the direction of Rapid Micro i.e., Rapid Micro and Vapotherm go up and down completely randomly.
Pair Corralation between Rapid Micro and Vapotherm
If you would invest 110.00 in Rapid Micro Biosystems on November 1, 2024 and sell it today you would earn a total of 81.00 from holding Rapid Micro Biosystems or generate 73.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 1.67% |
| Values | Daily Returns |
Rapid Micro Biosystems vs. Vapotherm
Performance |
| Timeline |
| Rapid Micro Biosystems |
| Vapotherm |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Rapid Micro and Vapotherm Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rapid Micro and Vapotherm
The main advantage of trading using opposite Rapid Micro and Vapotherm positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rapid Micro position performs unexpectedly, Vapotherm 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 Vapotherm will offset losses from the drop in Vapotherm's long position.| Rapid Micro vs. Rxsight | Rapid Micro vs. Axogen Inc | Rapid Micro vs. Treace Medical Concepts | Rapid Micro vs. Pulmonx Corp |
| Vapotherm vs. Sight Sciences | Vapotherm vs. STRATA Skin Sciences | Vapotherm vs. Neuropace | Vapotherm vs. Nexalin Technology |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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