Correlation Between ConforMIS and GN Store

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

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

Diversification Opportunities for ConforMIS and GN Store

0.0

Correlation Coefficient

ConforMIS  GN Store

Pay attention - limited upside

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

Pair Corralation between ConforMIS and GN Store

If you would invest  1,805  in GN Store Nord on December 2, 2024 and sell it today you would earn a total of  135.00  from holding GN Store Nord or generate 7.48% return on investment over 90 days.

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

ConforMIS  vs.  GN Store Nord

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.

GN Store Nord

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in GN Store Nord are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak fundamental indicators, GN Store may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with ConforMIS and GN Store

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

The idea behind ConforMIS and GN Store Nord 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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.