Correlation Between Tevano Systems and Avinger
Can any of the company-specific risk be diversified away by investing in both Tevano Systems and Avinger 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 Tevano Systems and Avinger into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tevano Systems Holdings and Avinger, you can compare the effects of market volatilities on Tevano Systems and Avinger 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 Tevano Systems with a short position of Avinger. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tevano Systems and Avinger.
Diversification Opportunities for Tevano Systems and Avinger
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Tevano and Avinger is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Tevano Systems Holdings and Avinger in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Avinger and Tevano Systems 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 Tevano Systems Holdings are associated (or correlated) with Avinger. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Avinger has no effect on the direction of Tevano Systems i.e., Tevano Systems and Avinger go up and down completely randomly.
Pair Corralation between Tevano Systems and Avinger
Assuming the 90 days horizon Tevano Systems Holdings is expected to generate 6.16 times more return on investment than Avinger. However, Tevano Systems is 6.16 times more volatile than Avinger. It trades about 0.12 of its potential returns per unit of risk. Avinger is currently generating about -0.1 per unit of risk. If you would invest 0.40 in Tevano Systems Holdings on September 1, 2024 and sell it today you would lose (0.40) from holding Tevano Systems Holdings or give up 100.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.47% |
| Values | Daily Returns |
Tevano Systems Holdings vs. Avinger
Performance |
| Timeline |
| Tevano Systems Holdings |
| Avinger |
Tevano Systems and Avinger Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tevano Systems and Avinger
The main advantage of trading using opposite Tevano Systems and Avinger positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tevano Systems position performs unexpectedly, Avinger 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 Avinger will offset losses from the drop in Avinger's long position.| Tevano Systems vs. Sysmex Corp | Tevano Systems vs. Coloplast AS | Tevano Systems vs. Essilor International SA | Tevano Systems vs. Coloplast A |
| Avinger vs. GlucoTrack | Avinger vs. Nexgel Inc | Avinger vs. Sharps Technology | Avinger vs. Innovative Eyewear |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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