Correlation Between Artivion and EnVVeno Medical

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

By analyzing existing cross correlation between Artivion and enVVeno Medical Corp, you can compare the effects of market volatilities on Artivion and EnVVeno Medical 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 EnVVeno Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Artivion and EnVVeno Medical.

Diversification Opportunities for Artivion and EnVVeno Medical

-0.55

Correlation Coefficient

Artivion  EnVVeno Medical

Excellent diversification

The 3 months correlation between Artivion and EnVVeno is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Artivion and enVVeno Medical Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on enVVeno Medical Corp 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 EnVVeno Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of enVVeno Medical Corp has no effect on the direction of Artivion i.e., Artivion and EnVVeno Medical go up and down completely randomly.

Pair Corralation between Artivion and EnVVeno Medical

Given the investment horizon of 90 days Artivion is expected to generate 0.35 times more return on investment than EnVVeno Medical. However, Artivion is 2.83 times less risky than EnVVeno Medical. It trades about 0.11 of its potential returns per unit of risk. enVVeno Medical Corp is currently generating about -0.14 per unit of risk. If you would invest  2,619  in Artivion on August 31, 2024 and sell it today you would earn a total of  286.00  from holding Artivion or generate 10.92% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Artivion  vs.  enVVeno Medical Corp

Artivion

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Artivion are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Artivion may actually be approaching a critical reversion point that can send shares even higher in December 2024.

enVVeno Medical Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days enVVeno Medical Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in December 2024. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Artivion and EnVVeno Medical

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

The idea behind Artivion and enVVeno Medical Corp 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.