Correlation Between SINTX Technologies and Vivos Therapeutics

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

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

Diversification Opportunities for SINTX Technologies and Vivos Therapeutics

0.34

Correlation Coefficient

SINTX Technologies  Vivos Therapeutics

Weak diversification

The 3 months correlation between SINTX and Vivos is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding SINTX Technologies and Vivos Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vivos Therapeutics 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 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 SINTX Technologies i.e., SINTX Technologies and Vivos Therapeutics go up and down completely randomly.

Pair Corralation between SINTX Technologies and Vivos Therapeutics

Given the investment horizon of 90 days SINTX Technologies is expected to under-perform the Vivos Therapeutics. But the stock apears to be less risky and, when comparing its historical volatility, SINTX Technologies is 3.34 times less risky than Vivos Therapeutics. The stock trades about -0.06 of its potential returns per unit of risk. The Vivos Therapeutics is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest  3,400  in Vivos Therapeutics on October 11, 2024 and sell it today you would lose (2,963) from holding Vivos Therapeutics or give up 87.15% of portfolio value over 90 days.

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

SINTX Technologies  vs.  Vivos Therapeutics

SINTX Technologies

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in SINTX Technologies are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, SINTX Technologies unveiled solid returns over the last few months and may actually be approaching a breakup point.

Vivos Therapeutics

Risk-Adjusted Performance

16 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Vivos Therapeutics are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile basic indicators, Vivos Therapeutics unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with SINTX Technologies and Vivos Therapeutics

The main advantage of trading using opposite SINTX Technologies and Vivos Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SINTX Technologies 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 SINTX Technologies 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.