Correlation Between GN Store and Tivic Health

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

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

Diversification Opportunities for GN Store and Tivic Health

0.1

Correlation Coefficient

GN Store  Tivic Health

Average diversification

The 3 months correlation between GNNDY and Tivic is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding GN Store Nord 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 GN Store 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 GN Store Nord 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 GN Store i.e., GN Store and Tivic Health go up and down completely randomly.

Pair Corralation between GN Store and Tivic Health

Assuming the 90 days horizon GN Store Nord is expected to under-perform the Tivic Health. But the pink sheet apears to be less risky and, when comparing its historical volatility, GN Store Nord is 5.48 times less risky than Tivic Health. The pink sheet trades about -0.2 of its potential returns per unit of risk. The Tivic Health Systems is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest  34.00  in Tivic Health Systems on September 4, 2024 and sell it today you would lose (7.00) from holding Tivic Health Systems or give up 20.59% of portfolio value over 90 days.

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

GN Store Nord  vs.  Tivic Health Systems

GN Store Nord

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days GN Store Nord has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's fundamental indicators remain fairly strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

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 GN Store and Tivic Health

The main advantage of trading using opposite GN Store and Tivic Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GN Store 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 GN Store Nord 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.