Correlation Between SINTX Technologies and Nuwellis

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

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

Diversification Opportunities for SINTX Technologies and Nuwellis

-0.44

Correlation Coefficient

SINTX Technologies  Nuwellis

Very good diversification

The 3 months correlation between SINTX and Nuwellis is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding SINTX Technologies and Nuwellis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuwellis 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 Nuwellis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuwellis has no effect on the direction of SINTX Technologies i.e., SINTX Technologies and Nuwellis go up and down completely randomly.

Pair Corralation between SINTX Technologies and Nuwellis

Given the investment horizon of 90 days SINTX Technologies is expected to generate 1.56 times more return on investment than Nuwellis. However, SINTX Technologies is 1.56 times more volatile than Nuwellis. It trades about 0.02 of its potential returns per unit of risk. Nuwellis is currently generating about 0.01 per unit of risk. If you would invest  325.00  in SINTX Technologies on November 19, 2024 and sell it today you would lose (30.00) from holding SINTX Technologies or give up 9.23% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

SINTX Technologies  vs.  Nuwellis

SINTX Technologies

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in SINTX Technologies are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, SINTX Technologies may actually be approaching a critical reversion point that can send shares even higher in March 2025.

Nuwellis

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Nuwellis are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound basic indicators, Nuwellis is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with SINTX Technologies and Nuwellis

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

The idea behind SINTX Technologies and Nuwellis 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.