Correlation Between Vivos and Vivos Therapeutics

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

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

Diversification Opportunities for Vivos and Vivos Therapeutics

-0.74

Correlation Coefficient

Vivos  Vivos Therapeutics

Pay attention - limited upside

The 3 months correlation between Vivos and Vivos is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Vivos Inc and Vivos Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vivos Therapeutics and Vivos 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 Vivos Inc 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 Vivos i.e., Vivos and Vivos Therapeutics go up and down completely randomly.

Pair Corralation between Vivos and Vivos Therapeutics

Given the investment horizon of 90 days Vivos is expected to generate 3.95 times less return on investment than Vivos Therapeutics. But when comparing it to its historical volatility, Vivos Inc is 5.69 times less risky than Vivos Therapeutics. It trades about 0.05 of its potential returns per unit of risk. Vivos Therapeutics is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  1,850  in Vivos Therapeutics on September 23, 2024 and sell it today you would lose (1,352) from holding Vivos Therapeutics or give up 73.08% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	99.8%
Values	Daily Returns

Vivos Inc  vs.  Vivos Therapeutics

Vivos Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Vivos Inc 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 technical and fundamental indicators remain quite persistent which may send shares a bit higher in January 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Vivos Therapeutics

Risk-Adjusted Performance

14 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Vivos Therapeutics are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively inconsistent basic indicators, Vivos Therapeutics unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Vivos and Vivos Therapeutics

The main advantage of trading using opposite Vivos and Vivos Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vivos 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 Vivos Inc 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.