Correlation Between STRATA Skin and Nemaura Medical
Can any of the company-specific risk be diversified away by investing in both STRATA Skin 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 STRATA Skin and Nemaura Medical 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 Nemaura Medical, you can compare the effects of market volatilities on STRATA Skin 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 STRATA Skin with a short position of Nemaura Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of STRATA Skin and Nemaura Medical.
Diversification Opportunities for STRATA Skin and Nemaura Medical
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between STRATA and Nemaura is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding STRATA Skin Sciences and Nemaura Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nemaura Medical 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 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 STRATA Skin i.e., STRATA Skin and Nemaura Medical go up and down completely randomly.
Pair Corralation between STRATA Skin and Nemaura Medical
Given the investment horizon of 90 days STRATA Skin Sciences is expected to generate 0.88 times more return on investment than Nemaura Medical. However, STRATA Skin Sciences is 1.13 times less risky than Nemaura Medical. It trades about 0.0 of its potential returns per unit of risk. Nemaura Medical 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 Together |
| Strength | Weak |
| Accuracy | 31.99% |
| Values | Daily Returns |
STRATA Skin Sciences vs. Nemaura Medical
Performance |
| Timeline |
| STRATA Skin Sciences |
| Nemaura Medical |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
STRATA Skin and Nemaura Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with STRATA Skin and Nemaura Medical
The main advantage of trading using opposite STRATA Skin and Nemaura Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if STRATA Skin 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.| STRATA Skin vs. Axogen Inc | STRATA Skin vs. Ainos Inc | STRATA Skin vs. LENSAR Inc | STRATA Skin vs. Nexalin Technology |
| 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |