Correlation Between Beyond Air and Hyperfine
Can any of the company-specific risk be diversified away by investing in both Beyond Air and Hyperfine 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 Beyond Air and Hyperfine into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Beyond Air and Hyperfine, you can compare the effects of market volatilities on Beyond Air and Hyperfine 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 Beyond Air with a short position of Hyperfine. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beyond Air and Hyperfine.
Diversification Opportunities for Beyond Air and Hyperfine
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Beyond and Hyperfine is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Beyond Air and Hyperfine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hyperfine and Beyond Air 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 Beyond Air are associated (or correlated) with Hyperfine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hyperfine has no effect on the direction of Beyond Air i.e., Beyond Air and Hyperfine go up and down completely randomly.
Pair Corralation between Beyond Air and Hyperfine
Given the investment horizon of 90 days Beyond Air is expected to under-perform the Hyperfine. But the stock apears to be less risky and, when comparing its historical volatility, Beyond Air is 2.01 times less risky than Hyperfine. The stock trades about -0.18 of its potential returns per unit of risk. The Hyperfine is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 99.00 in Hyperfine on November 28, 2024 and sell it today you would lose (2.00) from holding Hyperfine or give up 2.02% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beyond Air vs. Hyperfine
Performance |
| Timeline |
| Beyond Air |
| Hyperfine |
Beyond Air and Hyperfine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beyond Air and Hyperfine
The main advantage of trading using opposite Beyond Air and Hyperfine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beyond Air position performs unexpectedly, Hyperfine 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 Hyperfine will offset losses from the drop in Hyperfine's long position.| Beyond Air vs. Lucid Diagnostics | Beyond Air vs. Inari Medical | Beyond Air vs. PAVmed Series Z | Beyond Air vs. Clearpoint Neuro |
| Hyperfine vs. Neuropace | Hyperfine vs. Orthopediatrics Corp | Hyperfine vs. Anika Therapeutics | Hyperfine vs. PAVmed Inc |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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