Correlation Between SINTX Technologies and Helius Medical
Can any of the company-specific risk be diversified away by investing in both SINTX Technologies and Helius Medical 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 Helius Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SINTX Technologies and Helius Medical Technologies, you can compare the effects of market volatilities on SINTX Technologies and Helius Medical 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 Helius Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of SINTX Technologies and Helius Medical.
Diversification Opportunities for SINTX Technologies and Helius Medical
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between SINTX and Helius is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding SINTX Technologies and Helius Medical Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Helius Medical Techn 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 Helius Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Helius Medical Techn has no effect on the direction of SINTX Technologies i.e., SINTX Technologies and Helius Medical go up and down completely randomly.
Pair Corralation between SINTX Technologies and Helius Medical
Given the investment horizon of 90 days SINTX Technologies is expected to under-perform the Helius Medical. In addition to that, SINTX Technologies is 1.76 times more volatile than Helius Medical Technologies. It trades about -0.05 of its total potential returns per unit of risk. Helius Medical Technologies is currently generating about -0.07 per unit of volatility. If you would invest 1,467 in Helius Medical Technologies on August 25, 2024 and sell it today you would lose (1,422) from holding Helius Medical Technologies or give up 96.91% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
SINTX Technologies vs. Helius Medical Technologies
Performance |
| Timeline |
| SINTX Technologies |
| Helius Medical Techn |
SINTX Technologies and Helius Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SINTX Technologies and Helius Medical
The main advantage of trading using opposite SINTX Technologies and Helius Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SINTX Technologies position performs unexpectedly, Helius Medical 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 Helius Medical will offset losses from the drop in Helius Medical's long position.| SINTX Technologies vs. ReShape Lifesciences | SINTX Technologies vs. Bone Biologics Corp | SINTX Technologies vs. Tivic Health Systems | SINTX Technologies vs. Nuwellis |
| Helius Medical vs. Heartbeam | Helius Medical vs. EUDA Health Holdings | Helius Medical vs. Nutex Health | Helius Medical vs. Healthcare Triangle |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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