Correlation Between ReShape Lifesciences and GlucoTrack
Can any of the company-specific risk be diversified away by investing in both ReShape Lifesciences and GlucoTrack 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 ReShape Lifesciences and GlucoTrack into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ReShape Lifesciences and GlucoTrack, you can compare the effects of market volatilities on ReShape Lifesciences and GlucoTrack 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 ReShape Lifesciences with a short position of GlucoTrack. Check out your portfolio center. Please also check ongoing floating volatility patterns of ReShape Lifesciences and GlucoTrack.
Diversification Opportunities for ReShape Lifesciences and GlucoTrack
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ReShape and GlucoTrack is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding ReShape Lifesciences and GlucoTrack in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GlucoTrack and ReShape Lifesciences 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 ReShape Lifesciences are associated (or correlated) with GlucoTrack. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GlucoTrack has no effect on the direction of ReShape Lifesciences i.e., ReShape Lifesciences and GlucoTrack go up and down completely randomly.
Pair Corralation between ReShape Lifesciences and GlucoTrack
Given the investment horizon of 90 days ReShape Lifesciences is expected to generate 1.92 times more return on investment than GlucoTrack. However, ReShape Lifesciences is 1.92 times more volatile than GlucoTrack. It trades about -0.31 of its potential returns per unit of risk. GlucoTrack is currently generating about -0.89 per unit of risk. If you would invest 448.00 in ReShape Lifesciences on November 28, 2024 and sell it today you would lose (332.00) from holding ReShape Lifesciences or give up 74.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ReShape Lifesciences vs. GlucoTrack
Performance |
| Timeline |
| ReShape Lifesciences |
| GlucoTrack |
ReShape Lifesciences and GlucoTrack Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ReShape Lifesciences and GlucoTrack
The main advantage of trading using opposite ReShape Lifesciences and GlucoTrack positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ReShape Lifesciences position performs unexpectedly, GlucoTrack 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 GlucoTrack will offset losses from the drop in GlucoTrack's long position.| ReShape Lifesciences vs. SINTX Technologies | ReShape Lifesciences vs. Bone Biologics Corp | ReShape Lifesciences vs. Tivic Health Systems | ReShape Lifesciences vs. Nuwellis |
| GlucoTrack vs. Nexgel Inc | GlucoTrack vs. Sharps Technology | GlucoTrack vs. Innovative Eyewear | GlucoTrack vs. Predictive Oncology |
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 Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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