Correlation Between STRATA Skin and Bone Biologics
Can any of the company-specific risk be diversified away by investing in both STRATA Skin and Bone 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 STRATA Skin and Bone Biologics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between STRATA Skin Sciences and Bone Biologics Corp, you can compare the effects of market volatilities on STRATA Skin and Bone 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 STRATA Skin with a short position of Bone Biologics. Check out your portfolio center. Please also check ongoing floating volatility patterns of STRATA Skin and Bone Biologics.
Diversification Opportunities for STRATA Skin and Bone Biologics
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between STRATA and Bone is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding STRATA Skin Sciences and Bone Biologics Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bone Biologics Corp and STRATA Skin 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 STRATA Skin Sciences are associated (or correlated) with Bone Biologics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bone Biologics Corp has no effect on the direction of STRATA Skin i.e., STRATA Skin and Bone Biologics go up and down completely randomly.
Pair Corralation between STRATA Skin and Bone Biologics
Given the investment horizon of 90 days STRATA Skin Sciences is expected to generate 0.57 times more return on investment than Bone Biologics. However, STRATA Skin Sciences is 1.76 times less risky than Bone Biologics. It trades about 0.0 of its potential returns per unit of risk. Bone Biologics Corp is currently generating about -0.03 per unit of risk. If you would invest 850.00 in STRATA Skin Sciences on August 26, 2024 and sell it today you would lose (545.00) from holding STRATA Skin Sciences or give up 64.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
STRATA Skin Sciences vs. Bone Biologics Corp
Performance |
| Timeline |
| STRATA Skin Sciences |
| Bone Biologics Corp |
STRATA Skin and Bone Biologics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with STRATA Skin and Bone Biologics
The main advantage of trading using opposite STRATA Skin and Bone Biologics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if STRATA Skin position performs unexpectedly, Bone 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 Bone Biologics will offset losses from the drop in Bone Biologics' long position.| STRATA Skin vs. Axogen Inc | STRATA Skin vs. Ainos Inc | STRATA Skin vs. LENSAR Inc | STRATA Skin vs. Nexalin Technology |
| Bone Biologics vs. Bluejay Diagnostics | Bone Biologics vs. Nuwellis | Bone Biologics vs. Heart Test Laboratories | Bone Biologics vs. Tivic Health Systems |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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