Correlation Between Tenon Medical and Cptl Grp

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

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

Diversification Opportunities for Tenon Medical and Cptl Grp

0.0

Correlation Coefficient

Tenon Medical  Cptl Grp

Pay attention - limited upside

The 3 months correlation between Tenon and Cptl is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Tenon Medical and Cptl Grp Hldngs in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cptl Grp Hldngs and Tenon Medical 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 Tenon Medical are associated (or correlated) with Cptl Grp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cptl Grp Hldngs has no effect on the direction of Tenon Medical i.e., Tenon Medical and Cptl Grp go up and down completely randomly.

Pair Corralation between Tenon Medical and Cptl Grp

Given the investment horizon of 90 days Tenon Medical is expected to under-perform the Cptl Grp. In addition to that, Tenon Medical is 2.51 times more volatile than Cptl Grp Hldngs. It trades about -0.03 of its total potential returns per unit of risk. Cptl Grp Hldngs is currently generating about 0.04 per unit of volatility. If you would invest  0.01  in Cptl Grp Hldngs on October 12, 2024 and sell it today you would earn a total of  0.01  from holding Cptl Grp Hldngs or generate 100.0% return on investment over 90 days.

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

Tenon Medical  vs.  Cptl Grp Hldngs

Tenon Medical

Risk-Adjusted Performance

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Very Weak

Over the last 90 days Tenon Medical has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in February 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Cptl Grp Hldngs

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Cptl Grp Hldngs has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical indicators, Cptl Grp is not utilizing all of its potentials. The recent stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Tenon Medical and Cptl Grp

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

The idea behind Tenon Medical and Cptl Grp Hldngs 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.