Correlation Between Tivic Health and Vivos Therapeutics

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

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

Diversification Opportunities for Tivic Health and Vivos Therapeutics

-0.32

Correlation Coefficient

Tivic Health  Vivos Therapeutics

Very good diversification

The 3 months correlation between Tivic and Vivos is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Tivic Health Systems and Vivos Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vivos Therapeutics and Tivic Health 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 Tivic Health Systems 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 Tivic Health i.e., Tivic Health and Vivos Therapeutics go up and down completely randomly.

Pair Corralation between Tivic Health and Vivos Therapeutics

Given the investment horizon of 90 days Tivic Health Systems is expected to generate 8.03 times more return on investment than Vivos Therapeutics. However, Tivic Health is 8.03 times more volatile than Vivos Therapeutics. It trades about 0.16 of its potential returns per unit of risk. Vivos Therapeutics is currently generating about -0.09 per unit of risk. If you would invest  24.00  in Tivic Health Systems on December 1, 2024 and sell it today you would earn a total of  16.00  from holding Tivic Health Systems or generate 66.67% return on investment over 90 days.

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

Tivic Health Systems  vs.  Vivos Therapeutics

Tivic Health Systems

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Tivic Health Systems are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain basic indicators, Tivic Health exhibited solid returns over the last few months and may actually be approaching a breakup point.

Vivos Therapeutics

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Vivos Therapeutics are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Vivos Therapeutics is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Tivic Health and Vivos Therapeutics

The main advantage of trading using opposite Tivic Health and Vivos Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tivic Health 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 Tivic Health Systems 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.

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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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.