Correlation Between Sensus Healthcare and Aziyo Biologics
Can any of the company-specific risk be diversified away by investing in both Sensus Healthcare and Aziyo Biologics 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 Sensus Healthcare and Aziyo Biologics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sensus Healthcare and Aziyo Biologics, you can compare the effects of market volatilities on Sensus Healthcare and Aziyo Biologics 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 Sensus Healthcare with a short position of Aziyo Biologics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sensus Healthcare and Aziyo Biologics.
Diversification Opportunities for Sensus Healthcare and Aziyo Biologics
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Sensus and Aziyo is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Sensus Healthcare and Aziyo Biologics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aziyo Biologics and Sensus Healthcare 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 Sensus Healthcare are associated (or correlated) with Aziyo Biologics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aziyo Biologics has no effect on the direction of Sensus Healthcare i.e., Sensus Healthcare and Aziyo Biologics go up and down completely randomly.
Pair Corralation between Sensus Healthcare and Aziyo Biologics
Given the investment horizon of 90 days Sensus Healthcare is expected to generate 0.99 times more return on investment than Aziyo Biologics. However, Sensus Healthcare is 1.01 times less risky than Aziyo Biologics. It trades about 0.08 of its potential returns per unit of risk. Aziyo Biologics is currently generating about 0.03 per unit of risk. If you would invest 288.00 in Sensus Healthcare on August 31, 2024 and sell it today you would earn a total of 572.00 from holding Sensus Healthcare or generate 198.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 13.45% |
| Values | Daily Returns |
Sensus Healthcare vs. Aziyo Biologics
Performance |
| Timeline |
| Sensus Healthcare |
| Aziyo Biologics |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Sensus Healthcare and Aziyo Biologics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sensus Healthcare and Aziyo Biologics
The main advantage of trading using opposite Sensus Healthcare and Aziyo Biologics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sensus Healthcare position performs unexpectedly, Aziyo Biologics 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 Aziyo Biologics will offset losses from the drop in Aziyo Biologics' long position.| Sensus Healthcare vs. Ainos Inc | Sensus Healthcare vs. SurModics | Sensus Healthcare vs. LENSAR Inc | Sensus Healthcare vs. IRIDEX |
| Aziyo Biologics vs. Ainos Inc | Aziyo Biologics vs. SurModics | Aziyo Biologics vs. LENSAR Inc | Aziyo Biologics vs. IRIDEX |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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