Correlation Between Sight Sciences and Aurora Spine
Can any of the company-specific risk be diversified away by investing in both Sight Sciences and Aurora Spine 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 Sight Sciences and Aurora Spine into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sight Sciences and Aurora Spine, you can compare the effects of market volatilities on Sight Sciences and Aurora Spine 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 Sight Sciences with a short position of Aurora Spine. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sight Sciences and Aurora Spine.
Diversification Opportunities for Sight Sciences and Aurora Spine
-0.89 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Sight and Aurora is -0.89. Overlapping area represents the amount of risk that can be diversified away by holding Sight Sciences and Aurora Spine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aurora Spine and Sight Sciences 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 Sight Sciences are associated (or correlated) with Aurora Spine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aurora Spine has no effect on the direction of Sight Sciences i.e., Sight Sciences and Aurora Spine go up and down completely randomly.
Pair Corralation between Sight Sciences and Aurora Spine
Given the investment horizon of 90 days Sight Sciences is expected to generate 1.69 times less return on investment than Aurora Spine. In addition to that, Sight Sciences is 1.44 times more volatile than Aurora Spine. It trades about 0.02 of its total potential returns per unit of risk. Aurora Spine is currently generating about 0.04 per unit of volatility. If you would invest 22.00 in Aurora Spine on August 31, 2024 and sell it today you would earn a total of 8.00 from holding Aurora Spine or generate 36.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 99.73% |
| Values | Daily Returns |
Sight Sciences vs. Aurora Spine
Performance |
| Timeline |
| Sight Sciences |
| Aurora Spine |
Sight Sciences and Aurora Spine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sight Sciences and Aurora Spine
The main advantage of trading using opposite Sight Sciences and Aurora Spine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sight Sciences position performs unexpectedly, Aurora Spine 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 Aurora Spine will offset losses from the drop in Aurora Spine's long position.| Sight Sciences vs. Si Bone | Sight Sciences vs. Rapid Micro Biosystems | Sight Sciences vs. Tactile Systems Technology | Sight Sciences vs. Pulmonx Corp |
| Aurora Spine vs. Sonova Holding AG | Aurora Spine vs. Medtronic PLC | Aurora Spine vs. CONMED | Aurora Spine vs. Glaukos 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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