Correlation Between Artivion and CONMED

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

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

Diversification Opportunities for Artivion and CONMED

0.29

Correlation Coefficient

Artivion  CONMED

Modest diversification

The 3 months correlation between Artivion and CONMED is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Artivion and CONMED in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CONMED and Artivion 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 Artivion are associated (or correlated) with CONMED. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CONMED has no effect on the direction of Artivion i.e., Artivion and CONMED go up and down completely randomly.

Pair Corralation between Artivion and CONMED

Given the investment horizon of 90 days Artivion is expected to generate 0.69 times more return on investment than CONMED. However, Artivion is 1.45 times less risky than CONMED. It trades about 0.17 of its potential returns per unit of risk. CONMED is currently generating about -0.01 per unit of risk. If you would invest  2,525  in Artivion on September 13, 2024 and sell it today you would earn a total of  467.00  from holding Artivion or generate 18.5% return on investment over 90 days.

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

Artivion  vs.  CONMED

Artivion

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Artivion are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively conflicting basic indicators, Artivion unveiled solid returns over the last few months and may actually be approaching a breakup point.

CONMED

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days CONMED has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound primary indicators, CONMED is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Artivion and CONMED

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

The idea behind Artivion and CONMED 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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.