Correlation Between TriSalus Life and Myomo

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

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

Diversification Opportunities for TriSalus Life and Myomo

-0.25

Correlation Coefficient

TriSalus Life  Myomo

Very good diversification

The 3 months correlation between TriSalus and Myomo is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding TriSalus Life Sciences and Myomo Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Myomo Inc and TriSalus Life 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 TriSalus Life Sciences are associated (or correlated) with Myomo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Myomo Inc has no effect on the direction of TriSalus Life i.e., TriSalus Life and Myomo go up and down completely randomly.

Pair Corralation between TriSalus Life and Myomo

Assuming the 90 days horizon TriSalus Life Sciences is expected to generate 2.76 times more return on investment than Myomo. However, TriSalus Life is 2.76 times more volatile than Myomo Inc. It trades about 0.09 of its potential returns per unit of risk. Myomo Inc is currently generating about -0.02 per unit of risk. If you would invest  116.00  in TriSalus Life Sciences on December 2, 2024 and sell it today you would earn a total of  35.00  from holding TriSalus Life Sciences or generate 30.17% return on investment over 90 days.

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

TriSalus Life Sciences  vs.  Myomo Inc

TriSalus Life Sciences

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in TriSalus Life Sciences are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak forward indicators, TriSalus Life showed solid returns over the last few months and may actually be approaching a breakup point.

Myomo Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Myomo Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Myomo is not utilizing all of its potentials. The newest stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with TriSalus Life and Myomo

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

The idea behind TriSalus Life Sciences and Myomo Inc 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.