Correlation Between Tenon Medical and Greenbrook TMS
Can any of the company-specific risk be diversified away by investing in both Tenon Medical and Greenbrook TMS 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 Greenbrook TMS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tenon Medical and Greenbrook TMS, you can compare the effects of market volatilities on Tenon Medical and Greenbrook TMS 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 Greenbrook TMS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tenon Medical and Greenbrook TMS.
Diversification Opportunities for Tenon Medical and Greenbrook TMS
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Tenon and Greenbrook is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Tenon Medical and Greenbrook TMS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Greenbrook TMS 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 Greenbrook TMS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Greenbrook TMS has no effect on the direction of Tenon Medical i.e., Tenon Medical and Greenbrook TMS go up and down completely randomly.
Pair Corralation between Tenon Medical and Greenbrook TMS
If you would invest 34.00 in Greenbrook TMS on August 28, 2024 and sell it today you would earn a total of 0.00 from holding Greenbrook TMS or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Tenon Medical vs. Greenbrook TMS
Performance |
| Timeline |
| Tenon Medical |
| Greenbrook TMS |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Tenon Medical and Greenbrook TMS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tenon Medical and Greenbrook TMS
The main advantage of trading using opposite Tenon Medical and Greenbrook TMS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tenon Medical position performs unexpectedly, Greenbrook TMS 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 Greenbrook TMS will offset losses from the drop in Greenbrook TMS's long position.| Tenon Medical vs. Ainos Inc | Tenon Medical vs. STRATA Skin Sciences | Tenon Medical vs. Neuropace | Tenon Medical vs. Movano 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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