Correlation Between Tenon Medical and Xvivo Perfusion
Can any of the company-specific risk be diversified away by investing in both Tenon Medical and Xvivo Perfusion 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 Xvivo Perfusion into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tenon Medical and Xvivo Perfusion AB, you can compare the effects of market volatilities on Tenon Medical and Xvivo Perfusion 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 Xvivo Perfusion. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tenon Medical and Xvivo Perfusion.
Diversification Opportunities for Tenon Medical and Xvivo Perfusion
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Tenon and Xvivo is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Tenon Medical and Xvivo Perfusion AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xvivo Perfusion AB 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 Xvivo Perfusion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xvivo Perfusion AB has no effect on the direction of Tenon Medical i.e., Tenon Medical and Xvivo Perfusion go up and down completely randomly.
Pair Corralation between Tenon Medical and Xvivo Perfusion
Given the investment horizon of 90 days Tenon Medical is expected to under-perform the Xvivo Perfusion. In addition to that, Tenon Medical is 4.58 times more volatile than Xvivo Perfusion AB. It trades about -0.22 of its total potential returns per unit of risk. Xvivo Perfusion AB is currently generating about -0.31 per unit of volatility. If you would invest 4,547 in Xvivo Perfusion AB on August 28, 2024 and sell it today you would lose (424.00) from holding Xvivo Perfusion AB or give up 9.32% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tenon Medical vs. Xvivo Perfusion AB
Performance |
| Timeline |
| Tenon Medical |
| Xvivo Perfusion AB |
Tenon Medical and Xvivo Perfusion Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tenon Medical and Xvivo Perfusion
The main advantage of trading using opposite Tenon Medical and Xvivo Perfusion positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tenon Medical position performs unexpectedly, Xvivo Perfusion 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 Xvivo Perfusion will offset losses from the drop in Xvivo Perfusion's long position.| Tenon Medical vs. Heartbeam | Tenon Medical vs. EUDA Health Holdings | Tenon Medical vs. Nutex Health | Tenon Medical vs. Healthcare Triangle |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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