Correlation Between Anteris Technologies and Tenon Medical

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

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

Diversification Opportunities for Anteris Technologies and Tenon Medical

0.76

Correlation Coefficient

Anteris Technologies  Tenon Medical

Poor diversification

The 3 months correlation between Anteris and Tenon is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Anteris Technologies and Tenon Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tenon Medical and Anteris Technologies 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 Anteris Technologies are associated (or correlated) with Tenon Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tenon Medical has no effect on the direction of Anteris Technologies i.e., Anteris Technologies and Tenon Medical go up and down completely randomly.

Pair Corralation between Anteris Technologies and Tenon Medical

Assuming the 90 days horizon Anteris Technologies is expected to generate 0.38 times more return on investment than Tenon Medical. However, Anteris Technologies is 2.64 times less risky than Tenon Medical. It trades about -0.01 of its potential returns per unit of risk. Tenon Medical is currently generating about -0.03 per unit of risk. If you would invest  750.00  in Anteris Technologies on September 5, 2024 and sell it today you would lose (80.00) from holding Anteris Technologies or give up 10.67% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	98.44%
Values	Daily Returns

Anteris Technologies  vs.  Tenon Medical

Anteris Technologies

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Anteris Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Anteris Technologies is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

Tenon Medical

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Tenon Medical has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in January 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Anteris Technologies and Tenon Medical

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

The idea behind Anteris Technologies and Tenon Medical 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.