Correlation Between ConforMIS and Electrocore LLC

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

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

Diversification Opportunities for ConforMIS and Electrocore LLC

0.0

Correlation Coefficient

ConforMIS  Electrocore LLC

Pay attention - limited upside

The 3 months correlation between ConforMIS and Electrocore is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ConforMIS and Electrocore LLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Electrocore LLC and ConforMIS 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 ConforMIS are associated (or correlated) with Electrocore LLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Electrocore LLC has no effect on the direction of ConforMIS i.e., ConforMIS and Electrocore LLC go up and down completely randomly.

Pair Corralation between ConforMIS and Electrocore LLC

If you would invest  1,151  in Electrocore LLC on December 4, 2024 and sell it today you would earn a total of  320.00  from holding Electrocore LLC or generate 27.8% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

ConforMIS  vs.  Electrocore LLC

ConforMIS

Risk-Adjusted Performance

Very Weak

Over the last 90 days ConforMIS has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable primary indicators, ConforMIS is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Electrocore LLC

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Electrocore LLC are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Even with relatively unfluctuating basic indicators, Electrocore LLC reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with ConforMIS and Electrocore LLC

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

The idea behind ConforMIS and Electrocore LLC 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.