Correlation Between Apyx Medical and Venus Concept
Can any of the company-specific risk be diversified away by investing in both Apyx Medical and Venus Concept 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 Venus Concept into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apyx Medical and Venus Concept, you can compare the effects of market volatilities on Apyx Medical and Venus Concept 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 Venus Concept. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apyx Medical and Venus Concept.
Diversification Opportunities for Apyx Medical and Venus Concept
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Apyx and Venus is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Apyx Medical and Venus Concept in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Venus Concept 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 Venus Concept. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Venus Concept has no effect on the direction of Apyx Medical i.e., Apyx Medical and Venus Concept go up and down completely randomly.
Pair Corralation between Apyx Medical and Venus Concept
Given the investment horizon of 90 days Apyx Medical is expected to under-perform the Venus Concept. But the stock apears to be less risky and, when comparing its historical volatility, Apyx Medical is 2.75 times less risky than Venus Concept. The stock trades about -0.04 of its potential returns per unit of risk. The Venus Concept is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 391.00 in Venus Concept on December 26, 2024 and sell it today you would lose (76.00) from holding Venus Concept or give up 19.44% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Apyx Medical vs. Venus Concept
Performance |
Timeline |
Apyx Medical |
Venus Concept |
Apyx Medical and Venus Concept Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Apyx Medical and Venus Concept
The main advantage of trading using opposite Apyx Medical and Venus Concept positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apyx Medical position performs unexpectedly, Venus Concept 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 Venus Concept will offset losses from the drop in Venus Concept's long position.Apyx Medical vs. Neuropace | Apyx Medical vs. Inogen Inc | Apyx Medical vs. SurModics | Apyx Medical vs. Pulmonx Corp |
Venus Concept vs. Ainos Inc | Venus Concept vs. SurModics | Venus Concept vs. LENSAR Inc | Venus Concept vs. IRIDEX |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |