Correlation Between Nu-Med Plus and Vivos Therapeutics

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

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

Diversification Opportunities for Nu-Med Plus and Vivos Therapeutics

-0.48

Correlation Coefficient

Nu-Med Plus  Vivos Therapeutics

Very good diversification

The 3 months correlation between Nu-Med and Vivos is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Nu Med Plus and Vivos Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vivos Therapeutics and Nu-Med Plus 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 Nu Med Plus are associated (or correlated) with Vivos Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vivos Therapeutics has no effect on the direction of Nu-Med Plus i.e., Nu-Med Plus and Vivos Therapeutics go up and down completely randomly.

Pair Corralation between Nu-Med Plus and Vivos Therapeutics

Given the investment horizon of 90 days Nu Med Plus is expected to under-perform the Vivos Therapeutics. In addition to that, Nu-Med Plus is 1.81 times more volatile than Vivos Therapeutics. It trades about -0.17 of its total potential returns per unit of risk. Vivos Therapeutics is currently generating about 0.02 per unit of volatility. If you would invest  476.00  in Vivos Therapeutics on October 26, 2024 and sell it today you would lose (5.00) from holding Vivos Therapeutics or give up 1.05% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	90.0%
Values	Daily Returns

Nu Med Plus  vs.  Vivos Therapeutics

Nu Med Plus

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Nu Med Plus has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of conflicting performance in the last few months, the Stock's primary indicators remain rather sound which may send shares a bit higher in February 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Vivos Therapeutics

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Vivos Therapeutics are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile basic indicators, Vivos Therapeutics unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Nu-Med Plus and Vivos Therapeutics

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

The idea behind Nu Med Plus and Vivos Therapeutics 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 Global Correlations module to find global opportunities by holding instruments from different markets.