Correlation Between Vivos Therapeutics and NewGenIvf Group

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

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

Diversification Opportunities for Vivos Therapeutics and NewGenIvf Group

-0.54

Correlation Coefficient

Vivos Therapeutics  NewGenIvf Group

Excellent diversification

The 3 months correlation between Vivos and NewGenIvf is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Vivos Therapeutics and NewGenIvf Group Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NewGenIvf Group and Vivos Therapeutics 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 Vivos Therapeutics are associated (or correlated) with NewGenIvf Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NewGenIvf Group has no effect on the direction of Vivos Therapeutics i.e., Vivos Therapeutics and NewGenIvf Group go up and down completely randomly.

Pair Corralation between Vivos Therapeutics and NewGenIvf Group

Given the investment horizon of 90 days Vivos Therapeutics is expected to generate 0.35 times more return on investment than NewGenIvf Group. However, Vivos Therapeutics is 2.82 times less risky than NewGenIvf Group. It trades about 0.13 of its potential returns per unit of risk. NewGenIvf Group Limited is currently generating about 0.03 per unit of risk. If you would invest  286.00  in Vivos Therapeutics on September 12, 2024 and sell it today you would earn a total of  169.00  from holding Vivos Therapeutics or generate 59.09% return on investment over 90 days.

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

Vivos Therapeutics  vs.  NewGenIvf Group Limited

Vivos Therapeutics

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Vivos Therapeutics are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile basic indicators, Vivos Therapeutics unveiled solid returns over the last few months and may actually be approaching a breakup point.

NewGenIvf Group

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in NewGenIvf Group Limited are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly unsteady basic indicators, NewGenIvf Group reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Vivos Therapeutics and NewGenIvf Group

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

The idea behind Vivos Therapeutics and NewGenIvf Group Limited 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.