Correlation Between Femasys and Myomo

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

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

Diversification Opportunities for Femasys and Myomo

-0.62

Correlation Coefficient

Femasys  Myomo

Excellent diversification

The 3 months correlation between Femasys and Myomo is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Femasys and Myomo Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Myomo Inc and Femasys 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 Femasys are associated (or correlated) with Myomo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Myomo Inc has no effect on the direction of Femasys i.e., Femasys and Myomo go up and down completely randomly.

Pair Corralation between Femasys and Myomo

Given the investment horizon of 90 days Femasys is expected to generate 0.74 times more return on investment than Myomo. However, Femasys is 1.36 times less risky than Myomo. It trades about 0.09 of its potential returns per unit of risk. Myomo Inc is currently generating about -0.02 per unit of risk. If you would invest  110.00  in Femasys on December 28, 2024 and sell it today you would earn a total of  24.00  from holding Femasys or generate 21.82% return on investment over 90 days.

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

Femasys  vs.  Myomo Inc

Femasys

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Femasys are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak primary indicators, Femasys showed solid returns over the last few months and may actually be approaching a breakup point.

Myomo Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Myomo Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's basic indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

Pair Trading with Femasys and Myomo

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

The idea behind Femasys and Myomo Inc 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.