Correlation Between CONMED and Tivic Health

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

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

Diversification Opportunities for CONMED and Tivic Health

0.2

Correlation Coefficient

CONMED  Tivic Health

Modest diversification

The 3 months correlation between CONMED and Tivic is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding CONMED and Tivic Health Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tivic Health Systems and CONMED 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 CONMED are associated (or correlated) with Tivic Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tivic Health Systems has no effect on the direction of CONMED i.e., CONMED and Tivic Health go up and down completely randomly.

Pair Corralation between CONMED and Tivic Health

Given the investment horizon of 90 days CONMED is expected to generate 0.26 times more return on investment than Tivic Health. However, CONMED is 3.85 times less risky than Tivic Health. It trades about 0.05 of its potential returns per unit of risk. Tivic Health Systems is currently generating about 0.0 per unit of risk. If you would invest  7,114  in CONMED on September 4, 2024 and sell it today you would earn a total of  482.00  from holding CONMED or generate 6.78% return on investment over 90 days.

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

CONMED  vs.  Tivic Health Systems

CONMED

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in CONMED are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak primary indicators, CONMED may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Tivic Health Systems

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with CONMED and Tivic Health

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

The idea behind CONMED and Tivic Health Systems 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.

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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.