Correlation Between Stereotaxis and G Medical
Can any of the company-specific risk be diversified away by investing in both Stereotaxis and G 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 Stereotaxis and G Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stereotaxis and G Medical Innovations, you can compare the effects of market volatilities on Stereotaxis and G 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 Stereotaxis with a short position of G Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stereotaxis and G Medical.
Diversification Opportunities for Stereotaxis and G Medical
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Stereotaxis and GMVD is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Stereotaxis and G Medical Innovations in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on G Medical Innovations and Stereotaxis 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 Stereotaxis are associated (or correlated) with G Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of G Medical Innovations has no effect on the direction of Stereotaxis i.e., Stereotaxis and G Medical go up and down completely randomly.
Pair Corralation between Stereotaxis and G Medical
If you would invest 222.00 in Stereotaxis on August 28, 2024 and sell it today you would earn a total of 4.00 from holding Stereotaxis or generate 1.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 1.56% |
| Values | Daily Returns |
Stereotaxis vs. G Medical Innovations
Performance |
| Timeline |
| Stereotaxis |
| G Medical Innovations |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Stereotaxis and G Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stereotaxis and G Medical
The main advantage of trading using opposite Stereotaxis and G Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stereotaxis position performs unexpectedly, G 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 G Medical will offset losses from the drop in G Medical's long position.The idea behind Stereotaxis and G Medical Innovations pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| G Medical vs. Innovative Eyewear | G Medical vs. Sharps Technology | G Medical vs. JIN MEDICAL INTERNATIONAL | G Medical vs. Nexgel Inc |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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