Correlation Between Tela Bio and ConforMIS
Can any of the company-specific risk be diversified away by investing in both Tela Bio and ConforMIS 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 Tela Bio and ConforMIS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tela Bio and ConforMIS, you can compare the effects of market volatilities on Tela Bio and ConforMIS 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 Tela Bio with a short position of ConforMIS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tela Bio and ConforMIS.
Diversification Opportunities for Tela Bio and ConforMIS
Pay attention - limited upside
The 3 months correlation between Tela and ConforMIS is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Tela Bio and ConforMIS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ConforMIS and Tela Bio 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 Tela Bio are associated (or correlated) with ConforMIS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ConforMIS has no effect on the direction of Tela Bio i.e., Tela Bio and ConforMIS go up and down completely randomly.
Pair Corralation between Tela Bio and ConforMIS
If you would invest (100.00) in ConforMIS on December 4, 2024 and sell it today you would earn a total of 100.00 from holding ConforMIS or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Tela Bio vs. ConforMIS
Performance |
| Timeline |
| Tela Bio |
| ConforMIS |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Tela Bio and ConforMIS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tela Bio and ConforMIS
The main advantage of trading using opposite Tela Bio and ConforMIS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tela Bio position performs unexpectedly, ConforMIS 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 ConforMIS will offset losses from the drop in ConforMIS's long position.| Tela Bio vs. Sight Sciences | Tela Bio vs. Tactile Systems Technology | Tela Bio vs. Clearpoint Neuro | Tela Bio vs. CVRx Inc |
| ConforMIS vs. Bone Biologics Corp | ConforMIS vs. Tivic Health Systems | ConforMIS vs. Bluejay Diagnostics | ConforMIS vs. Vivos Therapeutics |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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