Correlation Between Tesla and Femasys

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

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

Diversification Opportunities for Tesla and Femasys

-0.77

Correlation Coefficient

Tesla  Femasys

Pay attention - limited upside

The 3 months correlation between Tesla and Femasys is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Tesla Inc and Femasys in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Femasys and Tesla 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 Tesla Inc are associated (or correlated) with Femasys. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Femasys has no effect on the direction of Tesla i.e., Tesla and Femasys go up and down completely randomly.

Pair Corralation between Tesla and Femasys

Given the investment horizon of 90 days Tesla Inc is expected to under-perform the Femasys. But the stock apears to be less risky and, when comparing its historical volatility, Tesla Inc is 1.04 times less risky than Femasys. The stock trades about -0.2 of its potential returns per unit of risk. The Femasys is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest  109.00  in Femasys on December 20, 2024 and sell it today you would earn a total of  51.00  from holding Femasys or generate 46.79% return on investment over 90 days.

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

Tesla Inc  vs.  Femasys

Tesla Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Tesla Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite abnormal performance in the last few months, the Stock's essential indicators remain somewhat strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Femasys

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Femasys are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak primary indicators, Femasys showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Tesla and Femasys

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

The idea behind Tesla Inc and Femasys 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.