Correlation Between Beyond Air and Sanara Medtech

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

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

Diversification Opportunities for Beyond Air and Sanara Medtech

0.46

Correlation Coefficient

Beyond Air  Sanara Medtech

Very weak diversification

The 3 months correlation between Beyond and Sanara is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Beyond Air and Sanara Medtech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sanara Medtech and Beyond Air 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 Beyond Air are associated (or correlated) with Sanara Medtech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sanara Medtech has no effect on the direction of Beyond Air i.e., Beyond Air and Sanara Medtech go up and down completely randomly.

Pair Corralation between Beyond Air and Sanara Medtech

Given the investment horizon of 90 days Beyond Air is expected to under-perform the Sanara Medtech. In addition to that, Beyond Air is 1.63 times more volatile than Sanara Medtech. It trades about -0.06 of its total potential returns per unit of risk. Sanara Medtech is currently generating about -0.01 per unit of volatility. If you would invest  3,319  in Sanara Medtech on December 28, 2024 and sell it today you would lose (197.00) from holding Sanara Medtech or give up 5.94% of portfolio value over 90 days.

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

Beyond Air  vs.  Sanara Medtech

Beyond Air

Risk-Adjusted Performance

Very Weak

Over the last 90 days Beyond Air has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Stock's forward indicators remain relatively invariable which may send shares a bit higher in April 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Sanara Medtech

Risk-Adjusted Performance

Very Weak

Over the last 90 days Sanara Medtech has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, Sanara Medtech is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Beyond Air and Sanara Medtech

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

The idea behind Beyond Air and Sanara Medtech 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.