Correlation Between Electromed and BioSig Technologies,

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

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

Diversification Opportunities for Electromed and BioSig Technologies,

0.76

Correlation Coefficient

Electromed  BioSig Technologies,

Poor diversification

The 3 months correlation between Electromed and BioSig is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Electromed and BioSig Technologies, Common in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BioSig Technologies, and Electromed 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 Electromed are associated (or correlated) with BioSig Technologies,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BioSig Technologies, has no effect on the direction of Electromed i.e., Electromed and BioSig Technologies, go up and down completely randomly.

Pair Corralation between Electromed and BioSig Technologies,

Given the investment horizon of 90 days Electromed is expected to generate 0.26 times more return on investment than BioSig Technologies,. However, Electromed is 3.78 times less risky than BioSig Technologies,. It trades about 0.22 of its potential returns per unit of risk. BioSig Technologies, Common is currently generating about 0.04 per unit of risk. If you would invest  2,405  in Electromed on October 7, 2024 and sell it today you would earn a total of  664.00  from holding Electromed or generate 27.61% return on investment over 90 days.

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

Electromed  vs.  BioSig Technologies, Common

Electromed

Risk-Adjusted Performance

19 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Electromed are ranked lower than 19 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady primary indicators, Electromed exhibited solid returns over the last few months and may actually be approaching a breakup point.

BioSig Technologies,

Risk-Adjusted Performance

19 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in BioSig Technologies, Common are ranked lower than 19 (%) of all global equities and portfolios over the last 90 days. In spite of very unsteady technical and fundamental indicators, BioSig Technologies, displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Electromed and BioSig Technologies,

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

The idea behind Electromed and BioSig Technologies, Common 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.