Correlation Between Tenon Medical and Elutia
Can any of the company-specific risk be diversified away by investing in both Tenon Medical and Elutia 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 Tenon Medical and Elutia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tenon Medical and Elutia Inc, you can compare the effects of market volatilities on Tenon Medical and Elutia 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 Tenon Medical with a short position of Elutia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tenon Medical and Elutia.
Diversification Opportunities for Tenon Medical and Elutia
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Tenon and Elutia is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Tenon Medical and Elutia Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elutia Inc and Tenon Medical 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 Tenon Medical are associated (or correlated) with Elutia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elutia Inc has no effect on the direction of Tenon Medical i.e., Tenon Medical and Elutia go up and down completely randomly.
Pair Corralation between Tenon Medical and Elutia
Given the investment horizon of 90 days Tenon Medical is expected to generate 2.54 times less return on investment than Elutia. In addition to that, Tenon Medical is 3.39 times more volatile than Elutia Inc. It trades about 0.0 of its total potential returns per unit of risk. Elutia Inc is currently generating about 0.03 per unit of volatility. If you would invest 406.00 in Elutia Inc on September 2, 2024 and sell it today you would earn a total of 8.00 from holding Elutia Inc or generate 1.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tenon Medical vs. Elutia Inc
Performance |
| Timeline |
| Tenon Medical |
| Elutia Inc |
Tenon Medical and Elutia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tenon Medical and Elutia
The main advantage of trading using opposite Tenon Medical and Elutia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tenon Medical position performs unexpectedly, Elutia 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 Elutia will offset losses from the drop in Elutia's long position.| Tenon Medical vs. Ainos Inc | Tenon Medical vs. STRATA Skin Sciences | Tenon Medical vs. Neuropace | Tenon Medical vs. Movano Inc |
| Elutia vs. Tff Pharmaceuticals | Elutia vs. Eliem Therapeutics | Elutia vs. Inhibrx | Elutia vs. Enliven 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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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