Correlation Between ProSomnus, Common and TransMedics

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

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

Diversification Opportunities for ProSomnus, Common and TransMedics

-0.17

Correlation Coefficient

ProSomnus, Common  TransMedics

Good diversification

The 3 months correlation between ProSomnus, and TransMedics is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding ProSomnus, Common Stock and TransMedics Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TransMedics Group and ProSomnus, Common 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 ProSomnus, Common Stock are associated (or correlated) with TransMedics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TransMedics Group has no effect on the direction of ProSomnus, Common i.e., ProSomnus, Common and TransMedics go up and down completely randomly.

Pair Corralation between ProSomnus, Common and TransMedics

If you would invest  47.00  in ProSomnus, Common Stock on September 23, 2024 and sell it today you would earn a total of  0.00  from holding ProSomnus, Common Stock or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	4.76%
Values	Daily Returns

ProSomnus, Common Stock  vs.  TransMedics Group

ProSomnus, Common Stock

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days ProSomnus, Common Stock has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, ProSomnus, Common is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

TransMedics Group

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days TransMedics Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's fundamental indicators remain fairly strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with ProSomnus, Common and TransMedics

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

The idea behind ProSomnus, Common Stock and TransMedics Group 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.