Correlation Between Vivos Therapeutics and Elutia
Can any of the company-specific risk be diversified away by investing in both Vivos Therapeutics and Elutia 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 Elutia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vivos Therapeutics and Elutia Inc, you can compare the effects of market volatilities on Vivos Therapeutics and Elutia 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 Elutia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vivos Therapeutics and Elutia.
Diversification Opportunities for Vivos Therapeutics and Elutia
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Vivos and Elutia is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Vivos Therapeutics and Elutia Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elutia Inc 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 Elutia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elutia Inc has no effect on the direction of Vivos Therapeutics i.e., Vivos Therapeutics and Elutia go up and down completely randomly.
Pair Corralation between Vivos Therapeutics and Elutia
Given the investment horizon of 90 days Vivos Therapeutics is expected to generate 0.91 times more return on investment than Elutia. However, Vivos Therapeutics is 1.1 times less risky than Elutia. It trades about 0.61 of its potential returns per unit of risk. Elutia Inc is currently generating about -0.08 per unit of risk. If you would invest 283.00 in Vivos Therapeutics on September 20, 2024 and sell it today you would earn a total of 207.00 from holding Vivos Therapeutics or generate 73.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vivos Therapeutics vs. Elutia Inc
Performance |
| Timeline |
| Vivos Therapeutics |
| Elutia Inc |
Vivos Therapeutics and Elutia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vivos Therapeutics and Elutia
The main advantage of trading using opposite Vivos Therapeutics and Elutia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vivos Therapeutics position performs unexpectedly, Elutia 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 Elutia will offset losses from the drop in Elutia's long position.| Vivos Therapeutics vs. Avita Medical | Vivos Therapeutics vs. Inogen Inc | Vivos Therapeutics vs. Apyx Medical |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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