Correlation Between Bone Biologics and Tenon Medical
Can any of the company-specific risk be diversified away by investing in both Bone Biologics 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 Bone Biologics and Tenon Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bone Biologics Corp and Tenon Medical, you can compare the effects of market volatilities on Bone Biologics 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 Bone Biologics with a short position of Tenon Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bone Biologics and Tenon Medical.
Diversification Opportunities for Bone Biologics and Tenon Medical
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bone and Tenon is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Bone Biologics Corp and Tenon Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tenon Medical and Bone Biologics 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 Bone Biologics Corp 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 Bone Biologics i.e., Bone Biologics and Tenon Medical go up and down completely randomly.
Pair Corralation between Bone Biologics and Tenon Medical
Assuming the 90 days horizon Bone Biologics Corp is expected to generate 1.99 times more return on investment than Tenon Medical. However, Bone Biologics is 1.99 times more volatile than Tenon Medical. It trades about 0.05 of its potential returns per unit of risk. Tenon Medical is currently generating about -0.05 per unit of risk. If you would invest 6,050 in Bone Biologics Corp on September 12, 2024 and sell it today you would lose (3,270) from holding Bone Biologics Corp or give up 54.05% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Bone Biologics Corp vs. Tenon Medical
Performance |
Timeline |
Bone Biologics Corp |
Tenon Medical |
Bone Biologics and Tenon Medical Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Bone Biologics and Tenon Medical
The main advantage of trading using opposite Bone Biologics and Tenon Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bone Biologics 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.Bone Biologics vs. Avita Medical | Bone Biologics vs. Sight Sciences | Bone Biologics vs. Treace Medical Concepts | Bone Biologics vs. Neuropace |
Tenon Medical vs. Ainos Inc | Tenon Medical vs. STRATA Skin Sciences | Tenon Medical vs. Neuropace | Tenon Medical vs. Movano Inc |
Check out your portfolio center.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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |