Correlation Between Tenon Medical and SurModics
Can any of the company-specific risk be diversified away by investing in both Tenon Medical and SurModics 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 SurModics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tenon Medical and SurModics, you can compare the effects of market volatilities on Tenon Medical and SurModics 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 SurModics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tenon Medical and SurModics.
Diversification Opportunities for Tenon Medical and SurModics
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Tenon and SurModics is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Tenon Medical and SurModics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SurModics 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 SurModics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SurModics has no effect on the direction of Tenon Medical i.e., Tenon Medical and SurModics go up and down completely randomly.
Pair Corralation between Tenon Medical and SurModics
Given the investment horizon of 90 days Tenon Medical is expected to under-perform the SurModics. In addition to that, Tenon Medical is 3.75 times more volatile than SurModics. It trades about -0.02 of its total potential returns per unit of risk. SurModics is currently generating about 0.04 per unit of volatility. If you would invest 2,553 in SurModics on November 2, 2024 and sell it today you would earn a total of 995.00 from holding SurModics or generate 38.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tenon Medical vs. SurModics
Performance |
| Timeline |
| Tenon Medical |
| SurModics |
Tenon Medical and SurModics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tenon Medical and SurModics
The main advantage of trading using opposite Tenon Medical and SurModics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tenon Medical position performs unexpectedly, SurModics 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 SurModics will offset losses from the drop in SurModics' long position.| Tenon Medical vs. Ainos Inc | Tenon Medical vs. STRATA Skin Sciences | Tenon Medical vs. Neuropace | Tenon Medical vs. Movano Inc |
| SurModics vs. LivaNova PLC | SurModics vs. Electromed | SurModics vs. Orthopediatrics Corp | SurModics vs. Neuropace |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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