Correlation Between ConforMIS and Evogene

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

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

Diversification Opportunities for ConforMIS and Evogene

-0.71

Correlation Coefficient

ConforMIS  Evogene

Pay attention - limited upside

The 3 months correlation between ConforMIS and Evogene is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding ConforMIS and Evogene in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Evogene 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 Evogene. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Evogene has no effect on the direction of ConforMIS i.e., ConforMIS and Evogene go up and down completely randomly.

Pair Corralation between ConforMIS and Evogene

If you would invest  223.00  in ConforMIS on September 14, 2024 and sell it today you would earn a total of  0.00  from holding ConforMIS or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	1.59%
Values	Daily Returns

ConforMIS  vs.  Evogene

ConforMIS

Risk-Adjusted Performance

0 of 100

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.

Evogene

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Evogene has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's technical and fundamental indicators remain very healthy which may send shares a bit higher in January 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with ConforMIS and Evogene

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

The idea behind ConforMIS and Evogene 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.

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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.