Correlation Between Tivic Health and CONMED
Can any of the company-specific risk be diversified away by investing in both Tivic Health and CONMED 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 Tivic Health and CONMED into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tivic Health Systems and CONMED, you can compare the effects of market volatilities on Tivic Health and CONMED 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 Tivic Health with a short position of CONMED. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tivic Health and CONMED.
Diversification Opportunities for Tivic Health and CONMED
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Tivic and CONMED is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Tivic Health Systems and CONMED in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CONMED and Tivic Health 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 Tivic Health Systems are associated (or correlated) with CONMED. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CONMED has no effect on the direction of Tivic Health i.e., Tivic Health and CONMED go up and down completely randomly.
Pair Corralation between Tivic Health and CONMED
Given the investment horizon of 90 days Tivic Health Systems is expected to under-perform the CONMED. In addition to that, Tivic Health is 4.63 times more volatile than CONMED. It trades about -0.06 of its total potential returns per unit of risk. CONMED is currently generating about -0.01 per unit of volatility. If you would invest 8,955 in CONMED on August 30, 2024 and sell it today you would lose (1,639) from holding CONMED or give up 18.3% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Tivic Health Systems vs. CONMED
Performance |
| Timeline |
| Tivic Health Systems |
| CONMED |
Tivic Health and CONMED Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tivic Health and CONMED
The main advantage of trading using opposite Tivic Health and CONMED positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tivic Health position performs unexpectedly, CONMED 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 CONMED will offset losses from the drop in CONMED's long position.| Tivic Health vs. Bluejay Diagnostics | Tivic Health vs. Heart Test Laboratories | Tivic Health vs. Nuwellis | Tivic Health vs. Bone Biologics 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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