Correlation Between Evogene and ConforMIS

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

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

Diversification Opportunities for Evogene and ConforMIS

0.0

Correlation Coefficient

Evogene  ConforMIS

Pay attention - limited upside

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

Pair Corralation between Evogene and ConforMIS

If you would invest  145.00  in Evogene on December 24, 2024 and sell it today you would lose (7.00) from holding Evogene or give up 4.83% of portfolio value over 90 days.

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

Evogene  vs.  ConforMIS

Evogene

Risk-Adjusted Performance

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 very healthy technical and fundamental indicators, Evogene is not utilizing all of its potentials. The newest stock price disarray, may contribute to short-term losses for the investors.

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.

Pair Trading with Evogene and ConforMIS

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

The idea behind Evogene and ConforMIS 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.