Correlation Between SANUWAVE Health and Nemaura Medical
Can any of the company-specific risk be diversified away by investing in both SANUWAVE Health and Nemaura 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 SANUWAVE Health and Nemaura Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SANUWAVE Health and Nemaura Medical, you can compare the effects of market volatilities on SANUWAVE Health and Nemaura 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 SANUWAVE Health with a short position of Nemaura Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of SANUWAVE Health and Nemaura Medical.
Diversification Opportunities for SANUWAVE Health and Nemaura Medical
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SANUWAVE and Nemaura is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SANUWAVE Health and Nemaura Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nemaura Medical and SANUWAVE Health 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 SANUWAVE Health are associated (or correlated) with Nemaura Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nemaura Medical has no effect on the direction of SANUWAVE Health i.e., SANUWAVE Health and Nemaura Medical go up and down completely randomly.
Pair Corralation between SANUWAVE Health and Nemaura Medical
If you would invest 938.00 in SANUWAVE Health on November 3, 2024 and sell it today you would earn a total of 1,832 from holding SANUWAVE Health or generate 195.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.4% |
| Values | Daily Returns |
SANUWAVE Health vs. Nemaura Medical
Performance |
| Timeline |
| SANUWAVE Health |
| Nemaura Medical |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
SANUWAVE Health and Nemaura Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SANUWAVE Health and Nemaura Medical
The main advantage of trading using opposite SANUWAVE Health and Nemaura Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SANUWAVE Health position performs unexpectedly, Nemaura 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 Nemaura Medical will offset losses from the drop in Nemaura Medical's long position.| SANUWAVE Health vs. Rafarma Pharmaceuticals | SANUWAVE Health vs. GulfSlope Energy | SANUWAVE Health vs. TSS, Common Stock |
| Nemaura Medical vs. Neuropace | Nemaura Medical vs. CVRx Inc | Nemaura Medical vs. Orthofix Medical | Nemaura Medical vs. Artivion |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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