Correlation Between CONMED and Bluejay Diagnostics

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

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

Diversification Opportunities for CONMED and Bluejay Diagnostics

0.03

Correlation Coefficient

CONMED  Bluejay Diagnostics

Significant diversification

The 3 months correlation between CONMED and Bluejay is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding CONMED and Bluejay Diagnostics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bluejay Diagnostics and CONMED 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 CONMED are associated (or correlated) with Bluejay Diagnostics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bluejay Diagnostics has no effect on the direction of CONMED i.e., CONMED and Bluejay Diagnostics go up and down completely randomly.

Pair Corralation between CONMED and Bluejay Diagnostics

Given the investment horizon of 90 days CONMED is expected to under-perform the Bluejay Diagnostics. But the stock apears to be less risky and, when comparing its historical volatility, CONMED is 6.99 times less risky than Bluejay Diagnostics. The stock trades about -0.01 of its potential returns per unit of risk. The Bluejay Diagnostics is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  755.00  in Bluejay Diagnostics on September 12, 2024 and sell it today you would lose (271.00) from holding Bluejay Diagnostics or give up 35.89% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

CONMED  vs.  Bluejay Diagnostics

CONMED

Risk-Adjusted Performance

0 of 100

Weak

Over the last 90 days CONMED has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound primary indicators, CONMED is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

Bluejay Diagnostics

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Bluejay Diagnostics are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of fairly fragile fundamental indicators, Bluejay Diagnostics showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with CONMED and Bluejay Diagnostics

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

The idea behind CONMED and Bluejay Diagnostics 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.