Correlation Between NAYA Biosciences, and TriSalus Life

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

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

Diversification Opportunities for NAYA Biosciences, and TriSalus Life

0.08

Correlation Coefficient

NAYA Biosciences,  TriSalus Life

Significant diversification

The 3 months correlation between NAYA and TriSalus is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding NAYA Biosciences, and TriSalus Life Sciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TriSalus Life Sciences and NAYA Biosciences, 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 NAYA Biosciences, are associated (or correlated) with TriSalus Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TriSalus Life Sciences has no effect on the direction of NAYA Biosciences, i.e., NAYA Biosciences, and TriSalus Life go up and down completely randomly.

Pair Corralation between NAYA Biosciences, and TriSalus Life

Given the investment horizon of 90 days NAYA Biosciences, is expected to under-perform the TriSalus Life. In addition to that, NAYA Biosciences, is 1.47 times more volatile than TriSalus Life Sciences. It trades about -0.12 of its total potential returns per unit of risk. TriSalus Life Sciences is currently generating about 0.28 per unit of volatility. If you would invest  91.00  in TriSalus Life Sciences on October 24, 2024 and sell it today you would earn a total of  40.00  from holding TriSalus Life Sciences or generate 43.96% return on investment over 90 days.

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

NAYA Biosciences,  vs.  TriSalus Life Sciences

NAYA Biosciences,

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days NAYA Biosciences, has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unfluctuating performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

TriSalus Life Sciences

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in TriSalus Life Sciences are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain forward indicators, TriSalus Life showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with NAYA Biosciences, and TriSalus Life

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

The idea behind NAYA Biosciences, and TriSalus Life Sciences 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.