Correlation Between Sientra and Sight Sciences

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

By analyzing existing cross correlation between Sientra and Sight Sciences, you can compare the effects of market volatilities on Sientra and Sight Sciences 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 Sight Sciences. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sientra and Sight Sciences.

Diversification Opportunities for Sientra and Sight Sciences

-0.91

Correlation Coefficient

Sientra  Sight Sciences

Pay attention - limited upside

The 3 months correlation between Sientra and Sight is -0.91. Overlapping area represents the amount of risk that can be diversified away by holding Sientra and Sight Sciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sight Sciences 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 Sight Sciences. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sight Sciences has no effect on the direction of Sientra i.e., Sientra and Sight Sciences go up and down completely randomly.

Pair Corralation between Sientra and Sight Sciences

If you would invest  429.00  in Sientra on September 5, 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	2.38%
Values	Daily Returns

Sientra  vs.  Sight Sciences

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.

Sight Sciences

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Sight Sciences 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 technical indicators remain comparatively stable which may send shares a bit higher in January 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Sientra and Sight Sciences

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

The idea behind Sientra and Sight Sciences 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.