Correlation Between TSS, Common and SANUWAVE Health,

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

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

Diversification Opportunities for TSS, Common and SANUWAVE Health,

-0.35

Correlation Coefficient

TSS, Common  SANUWAVE Health,

Very good diversification

The 3 months correlation between TSS, and SANUWAVE is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding TSS, Common Stock and SANUWAVE Health, Common in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SANUWAVE Health, Common and TSS, Common 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 TSS, Common Stock are associated (or correlated) with SANUWAVE Health,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SANUWAVE Health, Common has no effect on the direction of TSS, Common i.e., TSS, Common and SANUWAVE Health, go up and down completely randomly.

Pair Corralation between TSS, Common and SANUWAVE Health,

Given the investment horizon of 90 days TSS, Common Stock is expected to under-perform the SANUWAVE Health,. In addition to that, TSS, Common is 1.73 times more volatile than SANUWAVE Health, Common. It trades about -0.02 of its total potential returns per unit of risk. SANUWAVE Health, Common is currently generating about 0.22 per unit of volatility. If you would invest  2,295  in SANUWAVE Health, Common on December 27, 2024 and sell it today you would earn a total of  1,457  from holding SANUWAVE Health, Common or generate 63.49% return on investment over 90 days.

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

TSS, Common Stock  vs.  SANUWAVE Health, Common

TSS, Common Stock

Risk-Adjusted Performance

Very Weak

Over the last 90 days TSS, Common Stock has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest abnormal performance, the Stock's basic indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the firm traders.

SANUWAVE Health, Common

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in SANUWAVE Health, Common are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, SANUWAVE Health, showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with TSS, Common and SANUWAVE Health,

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

The idea behind TSS, Common Stock and SANUWAVE Health, Common 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.