Correlation Between Sientra and Accelerate Diagnostics
Can any of the company-specific risk be diversified away by investing in both Sientra and Accelerate Diagnostics 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 Sientra and Accelerate Diagnostics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sientra and Accelerate Diagnostics, you can compare the effects of market volatilities on Sientra and Accelerate Diagnostics 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 Sientra with a short position of Accelerate Diagnostics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sientra and Accelerate Diagnostics.
Diversification Opportunities for Sientra and Accelerate Diagnostics
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Sientra and Accelerate is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Sientra and Accelerate Diagnostics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Accelerate Diagnostics and Sientra 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 Sientra are associated (or correlated) with Accelerate Diagnostics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Accelerate Diagnostics has no effect on the direction of Sientra i.e., Sientra and Accelerate Diagnostics go up and down completely randomly.
Pair Corralation between Sientra and Accelerate Diagnostics
If you would invest 429.00 in Sientra on September 1, 2024 and sell it today you would earn a total of 0.00 from holding Sientra or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Sientra vs. Accelerate Diagnostics
Performance |
| Timeline |
| Sientra |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Accelerate Diagnostics |
Sientra and Accelerate Diagnostics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sientra and Accelerate Diagnostics
The main advantage of trading using opposite Sientra and Accelerate Diagnostics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sientra position performs unexpectedly, Accelerate Diagnostics 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 Accelerate Diagnostics will offset losses from the drop in Accelerate Diagnostics' long position.The idea behind Sientra and Accelerate Diagnostics 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.| Accelerate Diagnostics vs. CVRx Inc | Accelerate Diagnostics vs. Neuropace | Accelerate Diagnostics vs. Anika Therapeutics | Accelerate Diagnostics vs. Axogen 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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