Correlation Between Apyx Medical and Medtronic PLC
Can any of the company-specific risk be diversified away by investing in both Apyx Medical and Medtronic PLC 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 Apyx Medical and Medtronic PLC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apyx Medical and Medtronic PLC, you can compare the effects of market volatilities on Apyx Medical and Medtronic PLC 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 Apyx Medical with a short position of Medtronic PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apyx Medical and Medtronic PLC.
Diversification Opportunities for Apyx Medical and Medtronic PLC
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Apyx and Medtronic is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Apyx Medical and Medtronic PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Medtronic PLC and Apyx Medical 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 Apyx Medical are associated (or correlated) with Medtronic PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Medtronic PLC has no effect on the direction of Apyx Medical i.e., Apyx Medical and Medtronic PLC go up and down completely randomly.
Pair Corralation between Apyx Medical and Medtronic PLC
Given the investment horizon of 90 days Apyx Medical is expected to under-perform the Medtronic PLC. In addition to that, Apyx Medical is 1.88 times more volatile than Medtronic PLC. It trades about -0.05 of its total potential returns per unit of risk. Medtronic PLC is currently generating about 0.01 per unit of volatility. If you would invest 9,199 in Medtronic PLC on December 1, 2024 and sell it today you would earn a total of 3.00 from holding Medtronic PLC or generate 0.03% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Apyx Medical vs. Medtronic PLC
Performance |
Timeline |
Apyx Medical |
Medtronic PLC |
Apyx Medical and Medtronic PLC Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Apyx Medical and Medtronic PLC
The main advantage of trading using opposite Apyx Medical and Medtronic PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apyx Medical position performs unexpectedly, Medtronic PLC 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 Medtronic PLC will offset losses from the drop in Medtronic PLC's long position.Apyx Medical vs. Neuropace | Apyx Medical vs. Inogen Inc | Apyx Medical vs. SurModics | Apyx Medical vs. Pulmonx Corp |
Medtronic PLC vs. Edwards Lifesciences Corp | Medtronic PLC vs. Abbott Laboratories | Medtronic PLC vs. Boston Scientific Corp | Medtronic PLC vs. Zimmer Biomet Holdings |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |