Correlation Between Artivion and Nanomix

Can any of the company-specific risk be diversified away by investing in both Artivion and Nanomix 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 Artivion and Nanomix into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Artivion and Nanomix, you can compare the effects of market volatilities on Artivion and Nanomix 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 Artivion with a short position of Nanomix. Check out your portfolio center. Please also check ongoing floating volatility patterns of Artivion and Nanomix.

Diversification Opportunities for Artivion and Nanomix

0.74

Correlation Coefficient

Artivion  Nanomix

Poor diversification

The 3 months correlation between Artivion and Nanomix is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Artivion and Nanomix in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nanomix and Artivion 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 Artivion are associated (or correlated) with Nanomix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nanomix has no effect on the direction of Artivion i.e., Artivion and Nanomix go up and down completely randomly.

Pair Corralation between Artivion and Nanomix

Given the investment horizon of 90 days Artivion is expected to generate 6.41 times less return on investment than Nanomix. But when comparing it to its historical volatility, Artivion is 7.62 times less risky than Nanomix. It trades about 0.15 of its potential returns per unit of risk. Nanomix is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest  0.01  in Nanomix on September 5, 2024 and sell it today you would earn a total of  0.01  from holding Nanomix or generate 100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Artivion  vs.  Nanomix

Artivion

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Artivion are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively conflicting basic indicators, Artivion unveiled solid returns over the last few months and may actually be approaching a breakup point.

Nanomix

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Nanomix are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain primary indicators, Nanomix showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Artivion and Nanomix

The main advantage of trading using opposite Artivion and Nanomix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Artivion position performs unexpectedly, Nanomix 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 Nanomix will offset losses from the drop in Nanomix's long position.

The idea behind Artivion and Nanomix pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.