Correlation Between Tenon Medical and GN Store
Can any of the company-specific risk be diversified away by investing in both Tenon Medical and GN Store 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 GN Store into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tenon Medical and GN Store Nord, you can compare the effects of market volatilities on Tenon Medical and GN Store 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 GN Store. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tenon Medical and GN Store.
Diversification Opportunities for Tenon Medical and GN Store
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Tenon and GNNDY is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Tenon Medical and GN Store Nord in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GN Store Nord 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 GN Store. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GN Store Nord has no effect on the direction of Tenon Medical i.e., Tenon Medical and GN Store go up and down completely randomly.
Pair Corralation between Tenon Medical and GN Store
Given the investment horizon of 90 days Tenon Medical is expected to under-perform the GN Store. In addition to that, Tenon Medical is 3.47 times more volatile than GN Store Nord. It trades about -0.21 of its total potential returns per unit of risk. GN Store Nord is currently generating about -0.06 per unit of volatility. If you would invest 5,825 in GN Store Nord on August 26, 2024 and sell it today you would lose (177.00) from holding GN Store Nord or give up 3.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tenon Medical vs. GN Store Nord
Performance |
| Timeline |
| Tenon Medical |
| GN Store Nord |
Tenon Medical and GN Store Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tenon Medical and GN Store
The main advantage of trading using opposite Tenon Medical and GN Store positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tenon Medical position performs unexpectedly, GN Store 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 GN Store will offset losses from the drop in GN Store'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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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