Correlation Between Nuwellis and SINTX Technologies

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

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

Diversification Opportunities for Nuwellis and SINTX Technologies

-0.42

Correlation Coefficient

Nuwellis  SINTX Technologies

Very good diversification

The 3 months correlation between Nuwellis and SINTX is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Nuwellis and SINTX Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SINTX Technologies and Nuwellis 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 Nuwellis 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 Nuwellis i.e., Nuwellis and SINTX Technologies go up and down completely randomly.

Pair Corralation between Nuwellis and SINTX Technologies

Given the investment horizon of 90 days Nuwellis is expected to generate 1.42 times more return on investment than SINTX Technologies. However, Nuwellis is 1.42 times more volatile than SINTX Technologies. It trades about 0.07 of its potential returns per unit of risk. SINTX Technologies is currently generating about 0.07 per unit of risk. If you would invest  142.00  in Nuwellis on August 30, 2024 and sell it today you would lose (4.00) from holding Nuwellis or give up 2.82% of portfolio value over 90 days.

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

Nuwellis  vs.  SINTX Technologies

Nuwellis

Risk-Adjusted Performance

5 of 100

Modest

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

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 Nuwellis and SINTX Technologies

The main advantage of trading using opposite Nuwellis and SINTX Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuwellis 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 Nuwellis 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.