Correlation Between STRATA Skin and CVRx
Can any of the company-specific risk be diversified away by investing in both STRATA Skin and CVRx 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 STRATA Skin and CVRx into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between STRATA Skin Sciences and CVRx Inc, you can compare the effects of market volatilities on STRATA Skin and CVRx 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 STRATA Skin with a short position of CVRx. Check out your portfolio center. Please also check ongoing floating volatility patterns of STRATA Skin and CVRx.
Diversification Opportunities for STRATA Skin and CVRx
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between STRATA and CVRx is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding STRATA Skin Sciences and CVRx Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CVRx Inc and STRATA Skin 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 STRATA Skin Sciences are associated (or correlated) with CVRx. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CVRx Inc has no effect on the direction of STRATA Skin i.e., STRATA Skin and CVRx go up and down completely randomly.
Pair Corralation between STRATA Skin and CVRx
Given the investment horizon of 90 days STRATA Skin Sciences is expected to under-perform the CVRx. But the stock apears to be less risky and, when comparing its historical volatility, STRATA Skin Sciences is 1.07 times less risky than CVRx. The stock trades about -0.05 of its potential returns per unit of risk. The CVRx Inc is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 1,317 in CVRx Inc on December 27, 2024 and sell it today you would lose (57.00) from holding CVRx Inc or give up 4.33% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
STRATA Skin Sciences vs. CVRx Inc
Performance |
Timeline |
STRATA Skin Sciences |
CVRx Inc |
STRATA Skin and CVRx Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with STRATA Skin and CVRx
The main advantage of trading using opposite STRATA Skin and CVRx positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if STRATA Skin position performs unexpectedly, CVRx 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 CVRx will offset losses from the drop in CVRx's long position.STRATA Skin vs. Beyond Air | STRATA Skin vs. PAVmed Series Z | STRATA Skin vs. Clearpoint Neuro | STRATA Skin vs. LivaNova PLC |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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