Correlation Between Eargo, and CONMED

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Can any of the company-specific risk be diversified away by investing in both Eargo, and CONMED 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 Eargo, and CONMED into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eargo, Inc and CONMED, you can compare the effects of market volatilities on Eargo, and CONMED 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 Eargo, with a short position of CONMED. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eargo, and CONMED.

Diversification Opportunities for Eargo, and CONMED

-0.17
  Correlation Coefficient

Good diversification

The 3 months correlation between Eargo, and CONMED is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Eargo, Inc and CONMED in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CONMED and Eargo, 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 Eargo, Inc are associated (or correlated) with CONMED. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CONMED has no effect on the direction of Eargo, i.e., Eargo, and CONMED go up and down completely randomly.

Pair Corralation between Eargo, and CONMED

If you would invest  7,411  in CONMED on September 5, 2024 and sell it today you would lose (31.00) from holding CONMED or give up 0.42% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy1.56%
ValuesDaily Returns

Eargo, Inc  vs.  CONMED

 Performance 
       Timeline  
Eargo, Inc 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Eargo, Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Eargo, is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.
CONMED 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
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 current stock price tumult, may contribute to shorter-term losses for the shareholders.

Eargo, and CONMED Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Eargo, and CONMED

The main advantage of trading using opposite Eargo, and CONMED positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eargo, position performs unexpectedly, CONMED 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 CONMED will offset losses from the drop in CONMED's long position.
The idea behind Eargo, Inc and CONMED 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.

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