Correlation Between Bluejay Diagnostics and Apyx Medical

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

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

Diversification Opportunities for Bluejay Diagnostics and Apyx Medical

-0.52

Correlation Coefficient

Bluejay Diagnostics  Apyx Medical

Excellent diversification

The 3 months correlation between Bluejay and Apyx is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Bluejay Diagnostics and Apyx Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apyx Medical and Bluejay Diagnostics 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 Bluejay Diagnostics are associated (or correlated) with Apyx Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apyx Medical has no effect on the direction of Bluejay Diagnostics i.e., Bluejay Diagnostics and Apyx Medical go up and down completely randomly.

Pair Corralation between Bluejay Diagnostics and Apyx Medical

Given the investment horizon of 90 days Bluejay Diagnostics is expected to under-perform the Apyx Medical. In addition to that, Bluejay Diagnostics is 1.69 times more volatile than Apyx Medical. It trades about -0.08 of its total potential returns per unit of risk. Apyx Medical is currently generating about 0.02 per unit of volatility. If you would invest  252.00  in Apyx Medical on September 22, 2024 and sell it today you would lose (95.00) from holding Apyx Medical or give up 37.7% of portfolio value over 90 days.

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

Bluejay Diagnostics  vs.  Apyx Medical

Bluejay Diagnostics

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Bluejay Diagnostics has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly inconsistent fundamental indicators, Bluejay Diagnostics may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Apyx Medical

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Apyx Medical are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unsteady basic indicators, Apyx Medical showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Bluejay Diagnostics and Apyx Medical

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

The idea behind Bluejay Diagnostics and Apyx 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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.