Correlation Between Sight Sciences and TransMedics
Can any of the company-specific risk be diversified away by investing in both Sight Sciences and TransMedics 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 TransMedics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sight Sciences and TransMedics Group, you can compare the effects of market volatilities on Sight Sciences and TransMedics 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 TransMedics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sight Sciences and TransMedics.
Diversification Opportunities for Sight Sciences and TransMedics
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Sight and TransMedics is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Sight Sciences and TransMedics Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TransMedics Group 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 TransMedics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TransMedics Group has no effect on the direction of Sight Sciences i.e., Sight Sciences and TransMedics go up and down completely randomly.
Pair Corralation between Sight Sciences and TransMedics
Given the investment horizon of 90 days Sight Sciences is expected to generate 1.32 times more return on investment than TransMedics. However, Sight Sciences is 1.32 times more volatile than TransMedics Group. It trades about 0.06 of its potential returns per unit of risk. TransMedics Group is currently generating about 0.04 per unit of risk. If you would invest 265.00 in Sight Sciences on September 2, 2024 and sell it today you would earn a total of 134.00 from holding Sight Sciences or generate 50.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sight Sciences vs. TransMedics Group
Performance |
| Timeline |
| Sight Sciences |
| TransMedics Group |
Sight Sciences and TransMedics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sight Sciences and TransMedics
The main advantage of trading using opposite Sight Sciences and TransMedics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sight Sciences position performs unexpectedly, TransMedics 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 TransMedics will offset losses from the drop in TransMedics' long position.| Sight Sciences vs. Si Bone | Sight Sciences vs. Rapid Micro Biosystems | Sight Sciences vs. Tactile Systems Technology | Sight Sciences vs. Pulmonx Corp |
| TransMedics vs. Inspire Medical Systems | TransMedics vs. Inari Medical | TransMedics vs. InMode | TransMedics vs. Insulet |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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