Correlation Between Catheter Precision and Butterfly Network
Can any of the company-specific risk be diversified away by investing in both Catheter Precision and Butterfly Network 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 Catheter Precision and Butterfly Network into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Catheter Precision and Butterfly Network, you can compare the effects of market volatilities on Catheter Precision and Butterfly Network 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 Catheter Precision with a short position of Butterfly Network. Check out your portfolio center. Please also check ongoing floating volatility patterns of Catheter Precision and Butterfly Network.
Diversification Opportunities for Catheter Precision and Butterfly Network
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Catheter and Butterfly is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Catheter Precision and Butterfly Network in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Butterfly Network and Catheter Precision 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 Catheter Precision are associated (or correlated) with Butterfly Network. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Butterfly Network has no effect on the direction of Catheter Precision i.e., Catheter Precision and Butterfly Network go up and down completely randomly.
Pair Corralation between Catheter Precision and Butterfly Network
Given the investment horizon of 90 days Catheter Precision is expected to under-perform the Butterfly Network. In addition to that, Catheter Precision is 1.71 times more volatile than Butterfly Network. It trades about -0.04 of its total potential returns per unit of risk. Butterfly Network is currently generating about 0.1 per unit of volatility. If you would invest 107.00 in Butterfly Network on September 14, 2024 and sell it today you would earn a total of 232.00 from holding Butterfly Network or generate 216.82% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Catheter Precision vs. Butterfly Network
Performance |
Timeline |
Catheter Precision |
Butterfly Network |
Catheter Precision and Butterfly Network Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Catheter Precision and Butterfly Network
The main advantage of trading using opposite Catheter Precision and Butterfly Network positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Catheter Precision position performs unexpectedly, Butterfly Network 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 Butterfly Network will offset losses from the drop in Butterfly Network's long position.Catheter Precision vs. Centessa Pharmaceuticals PLC | Catheter Precision vs. Kandi Technologies Group | Catheter Precision vs. NuRAN Wireless | Catheter Precision vs. Lipocine |
Butterfly Network vs. Inari Medical | Butterfly Network vs. Masimo | Butterfly Network vs. Glaukos Corp | Butterfly Network vs. Inspire Medical Systems |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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