Correlation Between SINTX Technologies and Brainsway

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

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

Diversification Opportunities for SINTX Technologies and Brainsway

0.03

Correlation Coefficient

SINTX Technologies  Brainsway

Significant diversification

The 3 months correlation between SINTX and Brainsway is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding SINTX Technologies and Brainsway in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brainsway and SINTX Technologies 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 SINTX Technologies are associated (or correlated) with Brainsway. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brainsway has no effect on the direction of SINTX Technologies i.e., SINTX Technologies and Brainsway go up and down completely randomly.

Pair Corralation between SINTX Technologies and Brainsway

Given the investment horizon of 90 days SINTX Technologies is expected to under-perform the Brainsway. In addition to that, SINTX Technologies is 3.5 times more volatile than Brainsway. It trades about -0.01 of its total potential returns per unit of risk. Brainsway is currently generating about 0.04 per unit of volatility. If you would invest  937.00  in Brainsway on December 26, 2024 and sell it today you would earn a total of  40.00  from holding Brainsway or generate 4.27% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

SINTX Technologies  vs.  Brainsway

SINTX Technologies

Risk-Adjusted Performance

Very Weak

Over the last 90 days SINTX Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, SINTX Technologies is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Brainsway

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Brainsway are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain basic indicators, Brainsway may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with SINTX Technologies and Brainsway

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

The idea behind SINTX Technologies and Brainsway 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.