Correlation Between Beyond Air and NeuroMetrix
Can any of the company-specific risk be diversified away by investing in both Beyond Air and NeuroMetrix 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 NeuroMetrix into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Beyond Air and NeuroMetrix, you can compare the effects of market volatilities on Beyond Air and NeuroMetrix 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 NeuroMetrix. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beyond Air and NeuroMetrix.
Diversification Opportunities for Beyond Air and NeuroMetrix
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Beyond and NeuroMetrix is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Beyond Air and NeuroMetrix in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NeuroMetrix 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 NeuroMetrix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NeuroMetrix has no effect on the direction of Beyond Air i.e., Beyond Air and NeuroMetrix go up and down completely randomly.
Pair Corralation between Beyond Air and NeuroMetrix
Given the investment horizon of 90 days Beyond Air is expected to under-perform the NeuroMetrix. In addition to that, Beyond Air is 2.2 times more volatile than NeuroMetrix. It trades about -0.01 of its total potential returns per unit of risk. NeuroMetrix is currently generating about 0.09 per unit of volatility. If you would invest 401.00 in NeuroMetrix on September 1, 2024 and sell it today you would earn a total of 26.00 from holding NeuroMetrix or generate 6.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beyond Air vs. NeuroMetrix
Performance |
| Timeline |
| Beyond Air |
| NeuroMetrix |
Beyond Air and NeuroMetrix Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beyond Air and NeuroMetrix
The main advantage of trading using opposite Beyond Air and NeuroMetrix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beyond Air position performs unexpectedly, NeuroMetrix 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 NeuroMetrix will offset losses from the drop in NeuroMetrix's long position.| Beyond Air vs. Profound Medical Corp | Beyond Air vs. Si Bone | Beyond Air vs. Nevro Corp | Beyond Air vs. Paragon 28 |
| NeuroMetrix vs. Heart Test Laboratories | NeuroMetrix vs. ReShape Lifesciences | NeuroMetrix vs. Inspira Technologies Oxy | NeuroMetrix vs. Bone Biologics 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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