Correlation Between Vapotherm and Sight Sciences

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

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

Diversification Opportunities for Vapotherm and Sight Sciences

0.0

Correlation Coefficient

Vapotherm  Sight Sciences

Pay attention - limited upside

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

Pair Corralation between Vapotherm and Sight Sciences

If you would invest (100.00) in Vapotherm on November 28, 2024 and sell it today you would earn a total of  100.00  from holding Vapotherm or generate -100.0% return on investment over 90 days.

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

Vapotherm  vs.  Sight Sciences

Vapotherm

Risk-Adjusted Performance

Very Weak

Over the last 90 days Vapotherm has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Vapotherm is not utilizing all of its potentials. The newest stock price disarray, may contribute to short-term losses for the investors.

Sight Sciences

Risk-Adjusted Performance

Very Weak

Over the last 90 days Sight Sciences has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's technical indicators remain comparatively stable which may send shares a bit higher in March 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Vapotherm and Sight Sciences

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

The idea behind Vapotherm and Sight Sciences 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.