Correlation Between Sientra and Nevro Corp
Can any of the company-specific risk be diversified away by investing in both Sientra and Nevro Corp 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 Nevro Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sientra and Nevro Corp, you can compare the effects of market volatilities on Sientra and Nevro Corp 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 Nevro Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sientra and Nevro Corp.
Diversification Opportunities for Sientra and Nevro Corp
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sientra and Nevro is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Sientra and Nevro Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nevro Corp 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 Nevro Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nevro Corp has no effect on the direction of Sientra i.e., Sientra and Nevro Corp go up and down completely randomly.
Pair Corralation between Sientra and Nevro Corp
If you would invest 429.00 in Sientra on August 28, 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 Against |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Sientra vs. Nevro Corp
Performance |
| Timeline |
| Sientra |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Nevro Corp |
Sientra and Nevro Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sientra and Nevro Corp
The main advantage of trading using opposite Sientra and Nevro Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sientra position performs unexpectedly, Nevro Corp 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 Nevro Corp will offset losses from the drop in Nevro Corp's long position.The idea behind Sientra and Nevro Corp 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.| Nevro Corp vs. Integer Holdings Corp | Nevro Corp vs. Glaukos Corp | Nevro Corp vs. CONMED | Nevro Corp vs. Pulmonx 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |