Correlation Between Vivos Therapeutics and Electromed
Can any of the company-specific risk be diversified away by investing in both Vivos Therapeutics and Electromed 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 Vivos Therapeutics and Electromed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vivos Therapeutics and Electromed, you can compare the effects of market volatilities on Vivos Therapeutics and Electromed 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 Vivos Therapeutics with a short position of Electromed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vivos Therapeutics and Electromed.
Diversification Opportunities for Vivos Therapeutics and Electromed
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Vivos and Electromed is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Vivos Therapeutics and Electromed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Electromed and Vivos Therapeutics 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 Vivos Therapeutics are associated (or correlated) with Electromed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Electromed has no effect on the direction of Vivos Therapeutics i.e., Vivos Therapeutics and Electromed go up and down completely randomly.
Pair Corralation between Vivos Therapeutics and Electromed
Given the investment horizon of 90 days Vivos Therapeutics is expected to generate 13.63 times more return on investment than Electromed. However, Vivos Therapeutics is 13.63 times more volatile than Electromed. It trades about 0.04 of its potential returns per unit of risk. Electromed is currently generating about 0.08 per unit of risk. If you would invest 1,000.00 in Vivos Therapeutics on September 19, 2024 and sell it today you would lose (510.00) from holding Vivos Therapeutics or give up 51.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vivos Therapeutics vs. Electromed
Performance |
| Timeline |
| Vivos Therapeutics |
| Electromed |
Vivos Therapeutics and Electromed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vivos Therapeutics and Electromed
The main advantage of trading using opposite Vivos Therapeutics and Electromed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vivos Therapeutics position performs unexpectedly, Electromed 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 Electromed will offset losses from the drop in Electromed's long position.| Vivos Therapeutics vs. Bone Biologics Corp | Vivos Therapeutics vs. Tivic Health Systems | Vivos Therapeutics vs. Bluejay Diagnostics | Vivos Therapeutics vs. Rapid Micro Biosystems |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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