Correlation Between Tenon Medical and Tivic Health
Can any of the company-specific risk be diversified away by investing in both Tenon Medical and Tivic Health 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 Tivic Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tenon Medical and Tivic Health Systems, you can compare the effects of market volatilities on Tenon Medical and Tivic Health 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 Tivic Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tenon Medical and Tivic Health.
Diversification Opportunities for Tenon Medical and Tivic Health
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Tenon and Tivic is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Tenon Medical and Tivic Health Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tivic Health Systems 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 Tivic Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tivic Health Systems has no effect on the direction of Tenon Medical i.e., Tenon Medical and Tivic Health go up and down completely randomly.
Pair Corralation between Tenon Medical and Tivic Health
Given the investment horizon of 90 days Tenon Medical is expected to under-perform the Tivic Health. But the stock apears to be less risky and, when comparing its historical volatility, Tenon Medical is 2.18 times less risky than Tivic Health. The stock trades about -0.24 of its potential returns per unit of risk. The Tivic Health Systems is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 29.00 in Tivic Health Systems on August 24, 2024 and sell it today you would lose (5.00) from holding Tivic Health Systems or give up 17.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tenon Medical vs. Tivic Health Systems
Performance |
| Timeline |
| Tenon Medical |
| Tivic Health Systems |
Tenon Medical and Tivic Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tenon Medical and Tivic Health
The main advantage of trading using opposite Tenon Medical and Tivic Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tenon Medical position performs unexpectedly, Tivic Health 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 Tivic Health will offset losses from the drop in Tivic Health's long position.| Tenon Medical vs. Ainos Inc | Tenon Medical vs. STRATA Skin Sciences | Tenon Medical vs. Neuropace | Tenon Medical vs. Movano Inc |
| Tivic Health vs. Neuropace | Tivic Health vs. Inogen Inc | Tivic Health vs. SurModics | Tivic Health vs. Pulmonx Corp |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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