Correlation Between Tenon Medical and PetVivo Holdings

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

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

Diversification Opportunities for Tenon Medical and PetVivo Holdings

0.0

Correlation Coefficient

Tenon Medical  PetVivo Holdings

Pay attention - limited upside

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

Pair Corralation between Tenon Medical and PetVivo Holdings

If you would invest  191.00  in Tenon Medical on December 29, 2024 and sell it today you would earn a total of  89.00  from holding Tenon Medical or generate 46.6% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Tenon Medical  vs.  PetVivo Holdings

Tenon Medical

Risk-Adjusted Performance

Modest

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

PetVivo Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days PetVivo Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, PetVivo Holdings is not utilizing all of its potentials. The current stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Tenon Medical and PetVivo Holdings

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

The idea behind Tenon Medical and PetVivo Holdings 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.