Correlation Between GN Store and ConforMIS

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

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

Diversification Opportunities for GN Store and ConforMIS

0.0

Correlation Coefficient

GN Store  ConforMIS

Pay attention - limited upside

The 3 months correlation between GNNDY and ConforMIS is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GN Store Nord and ConforMIS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ConforMIS and GN Store 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 GN Store Nord 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 GN Store i.e., GN Store and ConforMIS go up and down completely randomly.

Pair Corralation between GN Store and ConforMIS

If you would invest (100.00) in ConforMIS on December 29, 2024 and sell it today you would earn a total of  100.00  from holding ConforMIS or generate -100.0% return on investment over 90 days.

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

GN Store Nord  vs.  ConforMIS

GN Store Nord

Risk-Adjusted Performance

Very Weak

Over the last 90 days GN Store Nord has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's fundamental indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company 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 GN Store and ConforMIS

The main advantage of trading using opposite GN Store and ConforMIS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GN Store 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 GN Store Nord 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.