Correlation Between Helius Medical and SINTX Technologies

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

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

Diversification Opportunities for Helius Medical and SINTX Technologies

0.12

Correlation Coefficient

Helius Medical  SINTX Technologies

Average diversification

The 3 months correlation between Helius and SINTX is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Helius Medical Technologies and SINTX Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SINTX Technologies and Helius Medical 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 Helius Medical Technologies are associated (or correlated) with SINTX Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SINTX Technologies has no effect on the direction of Helius Medical i.e., Helius Medical and SINTX Technologies go up and down completely randomly.

Pair Corralation between Helius Medical and SINTX Technologies

Given the investment horizon of 90 days Helius Medical Technologies is expected to under-perform the SINTX Technologies. But the stock apears to be less risky and, when comparing its historical volatility, Helius Medical Technologies is 1.41 times less risky than SINTX Technologies. The stock trades about -0.04 of its potential returns per unit of risk. The SINTX Technologies is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  349.00  in SINTX Technologies on August 30, 2024 and sell it today you would earn a total of  47.00  from holding SINTX Technologies or generate 13.47% return on investment over 90 days.

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

Helius Medical Technologies  vs.  SINTX Technologies

Helius Medical Techn

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Helius Medical Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's fundamental indicators remain comparatively stable which may send shares a bit higher in December 2024. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

SINTX Technologies

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in SINTX Technologies are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, SINTX Technologies unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Helius Medical and SINTX Technologies

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

The idea behind Helius Medical Technologies and SINTX Technologies 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.