Correlation Between Sientra and Accelerate Diagnostics

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

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

Diversification Opportunities for Sientra and Accelerate Diagnostics

-0.84

Correlation Coefficient

Sientra  Accelerate Diagnostics

Pay attention - limited upside

The 3 months correlation between Sientra and Accelerate is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding Sientra and Accelerate Diagnostics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Accelerate Diagnostics and Sientra 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 Sientra are associated (or correlated) with Accelerate Diagnostics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Accelerate Diagnostics has no effect on the direction of Sientra i.e., Sientra and Accelerate Diagnostics go up and down completely randomly.

Pair Corralation between Sientra and Accelerate Diagnostics

If you would invest  429.00  in Sientra on September 26, 2024 and sell it today you would earn a total of  0.00  from holding Sientra or generate 0.0% return on investment over 90 days.

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

Sientra  vs.  Accelerate Diagnostics

Sientra

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Sientra has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy technical and fundamental indicators, Sientra is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Accelerate Diagnostics

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Accelerate Diagnostics 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 Sientra and Accelerate Diagnostics

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

The idea behind Sientra and Accelerate Diagnostics 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 Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.