Correlation Between Sight Sciences and Hyperfine

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Can any of the company-specific risk be diversified away by investing in both Sight Sciences and Hyperfine 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 Hyperfine into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sight Sciences and Hyperfine, you can compare the effects of market volatilities on Sight Sciences and Hyperfine 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 Hyperfine. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sight Sciences and Hyperfine.

Diversification Opportunities for Sight Sciences and Hyperfine

0.65
  Correlation Coefficient

Poor diversification

The 3 months correlation between Sight and Hyperfine is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Sight Sciences and Hyperfine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hyperfine 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 Hyperfine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hyperfine has no effect on the direction of Sight Sciences i.e., Sight Sciences and Hyperfine go up and down completely randomly.

Pair Corralation between Sight Sciences and Hyperfine

Given the investment horizon of 90 days Sight Sciences is expected to under-perform the Hyperfine. In addition to that, Sight Sciences is 1.6 times more volatile than Hyperfine. It trades about -0.23 of its total potential returns per unit of risk. Hyperfine is currently generating about 0.04 per unit of volatility. If you would invest  96.00  in Hyperfine on August 31, 2024 and sell it today you would earn a total of  2.00  from holding Hyperfine or generate 2.08% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Sight Sciences  vs.  Hyperfine

 Performance 
       Timeline  
Sight Sciences 

Risk-Adjusted Performance

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Weak
 
Strong
Very Weak
Over the last 90 days Sight Sciences has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's technical indicators remain comparatively stable which may send shares a bit higher in December 2024. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.
Hyperfine 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Hyperfine has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Hyperfine is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Sight Sciences and Hyperfine Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Sight Sciences and Hyperfine

The main advantage of trading using opposite Sight Sciences and Hyperfine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sight Sciences position performs unexpectedly, Hyperfine 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 Hyperfine will offset losses from the drop in Hyperfine's long position.
The idea behind Sight Sciences and Hyperfine pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.

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