Correlation Between Sight Sciences and Hyperfine
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 Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Sight Sciences vs. Hyperfine
Performance |
Timeline |
Sight Sciences |
Hyperfine |
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.Sight Sciences vs. Si Bone | Sight Sciences vs. Rapid Micro Biosystems | Sight Sciences vs. Tactile Systems Technology | Sight Sciences vs. Pulmonx Corp |
Hyperfine vs. Neuropace | Hyperfine vs. Orthopediatrics Corp | Hyperfine vs. Anika Therapeutics | Hyperfine vs. PAVmed Inc |
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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