Correlation Between Tenon Medical, and Beyond Air

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

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

Diversification Opportunities for Tenon Medical, and Beyond Air

-0.6

Correlation Coefficient

Tenon Medical,  Beyond Air

Excellent diversification

The 3 months correlation between Tenon and Beyond is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Tenon Medical, Warrant and Beyond Air in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beyond Air 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, Warrant are associated (or correlated) with Beyond Air. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beyond Air has no effect on the direction of Tenon Medical, i.e., Tenon Medical, and Beyond Air go up and down completely randomly.

Pair Corralation between Tenon Medical, and Beyond Air

Assuming the 90 days horizon Tenon Medical, Warrant is expected to generate 5.43 times more return on investment than Beyond Air. However, Tenon Medical, is 5.43 times more volatile than Beyond Air. It trades about 0.07 of its potential returns per unit of risk. Beyond Air is currently generating about -0.28 per unit of risk. If you would invest  1.80  in Tenon Medical, Warrant on October 9, 2024 and sell it today you would lose (0.27) from holding Tenon Medical, Warrant or give up 15.0% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	63.16%
Values	Daily Returns

Tenon Medical, Warrant  vs.  Beyond Air

Tenon Medical, Warrant

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Tenon Medical, Warrant are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Tenon Medical, showed solid returns over the last few months and may actually be approaching a breakup point.

Beyond Air

Risk-Adjusted Performance

3 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Beyond Air are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Even with relatively unsteady forward indicators, Beyond Air reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Tenon Medical, and Beyond Air

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

The idea behind Tenon Medical, Warrant and Beyond Air 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.

Check out your portfolio center.

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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.