Correlation Between STRATA Skin and Rafina Innovations
Can any of the company-specific risk be diversified away by investing in both STRATA Skin and Rafina Innovations 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 Rafina Innovations 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 Rafina Innovations, you can compare the effects of market volatilities on STRATA Skin and Rafina Innovations 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 Rafina Innovations. Check out your portfolio center. Please also check ongoing floating volatility patterns of STRATA Skin and Rafina Innovations.
Diversification Opportunities for STRATA Skin and Rafina Innovations
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between STRATA and Rafina is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding STRATA Skin Sciences and Rafina Innovations in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rafina Innovations 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 Rafina Innovations. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rafina Innovations has no effect on the direction of STRATA Skin i.e., STRATA Skin and Rafina Innovations go up and down completely randomly.
Pair Corralation between STRATA Skin and Rafina Innovations
If you would invest 288.00 in STRATA Skin Sciences on October 23, 2024 and sell it today you would earn a total of 7.00 from holding STRATA Skin Sciences or generate 2.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 94.74% |
| Values | Daily Returns |
STRATA Skin Sciences vs. Rafina Innovations
Performance |
| Timeline |
| STRATA Skin Sciences |
| Rafina Innovations |
STRATA Skin and Rafina Innovations Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with STRATA Skin and Rafina Innovations
The main advantage of trading using opposite STRATA Skin and Rafina Innovations positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if STRATA Skin position performs unexpectedly, Rafina Innovations 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 Rafina Innovations will offset losses from the drop in Rafina Innovations' long position.| STRATA Skin vs. Axogen Inc | STRATA Skin vs. Ainos Inc | STRATA Skin vs. LENSAR Inc | STRATA Skin vs. Nexalin Technology |
| Rafina Innovations vs. LENSAR Inc | Rafina Innovations vs. Sight Sciences | Rafina Innovations vs. STRATA Skin Sciences | Rafina Innovations vs. enVVeno Medical Corp |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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