Correlation Between Tenon Medical and ProSomnus, Common
Can any of the company-specific risk be diversified away by investing in both Tenon Medical and ProSomnus, Common 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 ProSomnus, Common into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tenon Medical and ProSomnus, Common Stock, you can compare the effects of market volatilities on Tenon Medical and ProSomnus, Common 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 ProSomnus, Common. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tenon Medical and ProSomnus, Common.
Diversification Opportunities for Tenon Medical and ProSomnus, Common
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Tenon and ProSomnus, is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Tenon Medical and ProSomnus, Common Stock in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProSomnus, Common Stock 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 ProSomnus, Common. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProSomnus, Common Stock has no effect on the direction of Tenon Medical i.e., Tenon Medical and ProSomnus, Common go up and down completely randomly.
Pair Corralation between Tenon Medical and ProSomnus, Common
Given the investment horizon of 90 days Tenon Medical is expected to under-perform the ProSomnus, Common. But the stock apears to be less risky and, when comparing its historical volatility, Tenon Medical is 4.49 times less risky than ProSomnus, Common. The stock trades about -0.02 of its potential returns per unit of risk. The ProSomnus, Common Stock is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 551.00 in ProSomnus, Common Stock on August 28, 2024 and sell it today you would lose (504.00) from holding ProSomnus, Common Stock or give up 91.47% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 87.18% |
| Values | Daily Returns |
Tenon Medical vs. ProSomnus, Common Stock
Performance |
| Timeline |
| Tenon Medical |
| ProSomnus, Common Stock |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Tenon Medical and ProSomnus, Common Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tenon Medical and ProSomnus, Common
The main advantage of trading using opposite Tenon Medical and ProSomnus, Common positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tenon Medical position performs unexpectedly, ProSomnus, Common 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 ProSomnus, Common will offset losses from the drop in ProSomnus, Common's long position.| Tenon Medical vs. Ainos Inc | Tenon Medical vs. STRATA Skin Sciences | Tenon Medical vs. Neuropace | Tenon Medical vs. Movano Inc |
| ProSomnus, Common vs. LivaNova PLC | ProSomnus, Common vs. Electromed | ProSomnus, Common vs. Orthopediatrics Corp | ProSomnus, Common vs. SurModics |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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