Correlation Between Tenon Medical and ProSomnus, Common

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

By analyzing existing cross correlation between Tenon Medical and ProSomnus, Common Stock, you can compare the effects of market volatilities on Tenon Medical and ProSomnus, Common 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 ProSomnus, Common. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tenon Medical and ProSomnus, Common.

Diversification Opportunities for Tenon Medical and ProSomnus, Common

-0.14

Correlation Coefficient

Tenon Medical  ProSomnus, Common

Good diversification

The 3 months correlation between Tenon and ProSomnus, is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Tenon Medical and ProSomnus, Common Stock in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProSomnus, Common Stock 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 ProSomnus, Common. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProSomnus, Common Stock has no effect on the direction of Tenon Medical i.e., Tenon Medical and ProSomnus, Common go up and down completely randomly.

Pair Corralation between Tenon Medical and ProSomnus, Common

Given the investment horizon of 90 days Tenon Medical is expected to under-perform the ProSomnus, Common. But the stock apears to be less risky and, when comparing its historical volatility, Tenon Medical is 10.21 times less risky than ProSomnus, Common. The stock trades about -0.04 of its potential returns per unit of risk. The ProSomnus, Common Stock is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest  60.00  in ProSomnus, Common Stock on October 22, 2024 and sell it today you would lose (13.00) from holding ProSomnus, Common Stock or give up 21.67% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	57.46%
Values	Daily Returns

Tenon Medical  vs.  ProSomnus, Common Stock

Tenon Medical

Risk-Adjusted Performance

0 of 100

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.

ProSomnus, Common Stock

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days ProSomnus, Common Stock has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, ProSomnus, Common is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Tenon Medical and ProSomnus, Common

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

The idea behind Tenon Medical and ProSomnus, Common Stock 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..