Correlation Between SINTX Technologies and Brainsway
Can any of the company-specific risk be diversified away by investing in both SINTX Technologies and Brainsway 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 SINTX Technologies and Brainsway into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SINTX Technologies and Brainsway, you can compare the effects of market volatilities on SINTX Technologies and Brainsway 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 SINTX Technologies with a short position of Brainsway. Check out your portfolio center. Please also check ongoing floating volatility patterns of SINTX Technologies and Brainsway.
Diversification Opportunities for SINTX Technologies and Brainsway
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between SINTX and Brainsway is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding SINTX Technologies and Brainsway in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brainsway and SINTX Technologies 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 SINTX Technologies are associated (or correlated) with Brainsway. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brainsway has no effect on the direction of SINTX Technologies i.e., SINTX Technologies and Brainsway go up and down completely randomly.
Pair Corralation between SINTX Technologies and Brainsway
Given the investment horizon of 90 days SINTX Technologies is expected to under-perform the Brainsway. But the stock apears to be less risky and, when comparing its historical volatility, SINTX Technologies is 1.03 times less risky than Brainsway. The stock trades about -0.35 of its potential returns per unit of risk. The Brainsway is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 974.00 in Brainsway on November 4, 2024 and sell it today you would earn a total of 77.00 from holding Brainsway or generate 7.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SINTX Technologies vs. Brainsway
Performance |
| Timeline |
| SINTX Technologies |
| Brainsway |
SINTX Technologies and Brainsway Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SINTX Technologies and Brainsway
The main advantage of trading using opposite SINTX Technologies and Brainsway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SINTX Technologies position performs unexpectedly, Brainsway 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 Brainsway will offset losses from the drop in Brainsway's long position.| SINTX Technologies vs. ReShape Lifesciences | SINTX Technologies vs. Bone Biologics Corp | SINTX Technologies vs. Tivic Health Systems | SINTX Technologies vs. Nuwellis |
| Brainsway vs. Delcath Systems | Brainsway vs. Paragon 28 | Brainsway vs. USA Equities Corp | Brainsway vs. Venus Concept |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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