Correlation Between Vapotherm and Medigus
Can any of the company-specific risk be diversified away by investing in both Vapotherm and Medigus 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 Vapotherm and Medigus into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vapotherm and Medigus Ltd ADR, you can compare the effects of market volatilities on Vapotherm and Medigus 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 Vapotherm with a short position of Medigus. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vapotherm and Medigus.
Diversification Opportunities for Vapotherm and Medigus
Average diversification
The 3 months correlation between Vapotherm and Medigus is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Vapotherm and Medigus Ltd ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Medigus Ltd ADR and Vapotherm 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 Vapotherm are associated (or correlated) with Medigus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Medigus Ltd ADR has no effect on the direction of Vapotherm i.e., Vapotherm and Medigus go up and down completely randomly.
Pair Corralation between Vapotherm and Medigus
If you would invest 40.00 in Vapotherm on August 29, 2024 and sell it today you would earn a total of 0.00 from holding Vapotherm or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 7.14% |
| Values | Daily Returns |
Vapotherm vs. Medigus Ltd ADR
Performance |
| Timeline |
| Vapotherm |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Medigus Ltd ADR |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Vapotherm and Medigus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vapotherm and Medigus
The main advantage of trading using opposite Vapotherm and Medigus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vapotherm position performs unexpectedly, Medigus 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 Medigus will offset losses from the drop in Medigus' long position.| Vapotherm vs. Sight Sciences | Vapotherm vs. STRATA Skin Sciences | Vapotherm vs. Neuropace | Vapotherm vs. Nexalin Technology |
| Medigus vs. Brainsway | Medigus vs. Delcath Systems | Medigus vs. Paragon 28 | Medigus vs. Nexalin Technology |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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