Correlation Between Sanara Medtech and Daxor

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

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

Diversification Opportunities for Sanara Medtech and Daxor

0.48

Correlation Coefficient

Sanara Medtech  Daxor

Very weak diversification

The 3 months correlation between Sanara and Daxor is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Sanara Medtech and Daxor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Daxor and Sanara Medtech 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 Sanara Medtech are associated (or correlated) with Daxor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Daxor has no effect on the direction of Sanara Medtech i.e., Sanara Medtech and Daxor go up and down completely randomly.

Pair Corralation between Sanara Medtech and Daxor

Given the investment horizon of 90 days Sanara Medtech is expected to generate 0.85 times more return on investment than Daxor. However, Sanara Medtech is 1.18 times less risky than Daxor. It trades about 0.06 of its potential returns per unit of risk. Daxor is currently generating about -0.04 per unit of risk. If you would invest  3,155  in Sanara Medtech on October 24, 2024 and sell it today you would earn a total of  245.00  from holding Sanara Medtech or generate 7.77% return on investment over 90 days.

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

Sanara Medtech  vs.  Daxor

Sanara Medtech

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Sanara Medtech are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite fairly weak basic indicators, Sanara Medtech may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Daxor

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Daxor has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest uncertain performance, the Stock's basic indicators remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the enterprise retail investors.

Pair Trading with Sanara Medtech and Daxor

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

The idea behind Sanara Medtech and Daxor 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.