Correlation Between Catheter Precision and Apyx Medical
Can any of the company-specific risk be diversified away by investing in both Catheter Precision and Apyx Medical 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 Catheter Precision and Apyx Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Catheter Precision and Apyx Medical, you can compare the effects of market volatilities on Catheter Precision and Apyx Medical 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 Catheter Precision with a short position of Apyx Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Catheter Precision and Apyx Medical.
Diversification Opportunities for Catheter Precision and Apyx Medical
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Catheter and Apyx is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Catheter Precision and Apyx Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apyx Medical and Catheter Precision 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 Catheter Precision are associated (or correlated) with Apyx Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apyx Medical has no effect on the direction of Catheter Precision i.e., Catheter Precision and Apyx Medical go up and down completely randomly.
Pair Corralation between Catheter Precision and Apyx Medical
Given the investment horizon of 90 days Catheter Precision is expected to under-perform the Apyx Medical. In addition to that, Catheter Precision is 1.55 times more volatile than Apyx Medical. It trades about -0.04 of its total potential returns per unit of risk. Apyx Medical is currently generating about -0.03 per unit of volatility. If you would invest 158.00 in Apyx Medical on November 2, 2024 and sell it today you would lose (6.00) from holding Apyx Medical or give up 3.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Catheter Precision vs. Apyx Medical
Performance |
| Timeline |
| Catheter Precision |
| Apyx Medical |
Catheter Precision and Apyx Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Catheter Precision and Apyx Medical
The main advantage of trading using opposite Catheter Precision and Apyx Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Catheter Precision position performs unexpectedly, Apyx Medical 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 Apyx Medical will offset losses from the drop in Apyx Medical's long position.| Catheter Precision vs. Uber Technologies | Catheter Precision vs. Spyre Therapeutics | Catheter Precision vs. Apogee Therapeutics, Common | Catheter Precision vs. Aperture Health |
| Apyx Medical vs. Neuropace | Apyx Medical vs. Inogen Inc | Apyx Medical vs. SurModics | Apyx Medical 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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