Correlation Between ReShape Lifesciences and NanoVibronix
Can any of the company-specific risk be diversified away by investing in both ReShape Lifesciences and NanoVibronix 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 NanoVibronix into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ReShape Lifesciences and NanoVibronix, you can compare the effects of market volatilities on ReShape Lifesciences and NanoVibronix 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 NanoVibronix. Check out your portfolio center. Please also check ongoing floating volatility patterns of ReShape Lifesciences and NanoVibronix.
Diversification Opportunities for ReShape Lifesciences and NanoVibronix
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between ReShape and NanoVibronix is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding ReShape Lifesciences and NanoVibronix in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NanoVibronix 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 NanoVibronix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NanoVibronix has no effect on the direction of ReShape Lifesciences i.e., ReShape Lifesciences and NanoVibronix go up and down completely randomly.
Pair Corralation between ReShape Lifesciences and NanoVibronix
Given the investment horizon of 90 days ReShape Lifesciences is expected to under-perform the NanoVibronix. But the stock apears to be less risky and, when comparing its historical volatility, ReShape Lifesciences is 2.61 times less risky than NanoVibronix. The stock trades about -0.12 of its potential returns per unit of risk. The NanoVibronix is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 62.00 in NanoVibronix on November 2, 2024 and sell it today you would lose (3.00) from holding NanoVibronix or give up 4.84% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
ReShape Lifesciences vs. NanoVibronix
Performance |
| Timeline |
| ReShape Lifesciences |
| NanoVibronix |
ReShape Lifesciences and NanoVibronix Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ReShape Lifesciences and NanoVibronix
The main advantage of trading using opposite ReShape Lifesciences and NanoVibronix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ReShape Lifesciences position performs unexpectedly, NanoVibronix 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 NanoVibronix will offset losses from the drop in NanoVibronix's long position.| ReShape Lifesciences vs. SINTX Technologies | ReShape Lifesciences vs. Bone Biologics Corp | ReShape Lifesciences vs. Tivic Health Systems | ReShape Lifesciences vs. Nuwellis |
| NanoVibronix vs. Bone Biologics Corp | NanoVibronix vs. Bluejay Diagnostics | NanoVibronix vs. Vivos Therapeutics | NanoVibronix 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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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