Correlation Between WORK Medical and TriSalus Life

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

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

Diversification Opportunities for WORK Medical and TriSalus Life

0.26

Correlation Coefficient

WORK Medical  TriSalus Life

Modest diversification

The 3 months correlation between WORK and TriSalus is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding WORK Medical Technology and TriSalus Life Sciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TriSalus Life Sciences and WORK Medical 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 WORK Medical Technology are associated (or correlated) with TriSalus Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TriSalus Life Sciences has no effect on the direction of WORK Medical i.e., WORK Medical and TriSalus Life go up and down completely randomly.

Pair Corralation between WORK Medical and TriSalus Life

Considering the 90-day investment horizon WORK Medical Technology is expected to generate 0.85 times more return on investment than TriSalus Life. However, WORK Medical Technology is 1.18 times less risky than TriSalus Life. It trades about -0.04 of its potential returns per unit of risk. TriSalus Life Sciences is currently generating about -0.16 per unit of risk. If you would invest  529.00  in WORK Medical Technology on September 13, 2024 and sell it today you would lose (58.00) from holding WORK Medical Technology or give up 10.96% of portfolio value over 90 days.

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

WORK Medical Technology  vs.  TriSalus Life Sciences

WORK Medical Technology

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in WORK Medical Technology are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite quite weak basic indicators, WORK Medical may actually be approaching a critical reversion point that can send shares even higher in January 2025.

TriSalus Life Sciences

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days TriSalus Life Sciences has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable forward indicators, TriSalus Life is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with WORK Medical and TriSalus Life

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

The idea behind WORK Medical Technology and TriSalus Life 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.