Correlation Between Pulmonx Corp and Tivic Health

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

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

Diversification Opportunities for Pulmonx Corp and Tivic Health

0.13

Correlation Coefficient

Pulmonx Corp  Tivic Health

Average diversification

The 3 months correlation between Pulmonx and Tivic is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Pulmonx Corp 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 Pulmonx Corp 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 Pulmonx Corp 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 Pulmonx Corp i.e., Pulmonx Corp and Tivic Health go up and down completely randomly.

Pair Corralation between Pulmonx Corp and Tivic Health

Given the investment horizon of 90 days Pulmonx Corp is expected to generate 0.35 times more return on investment than Tivic Health. However, Pulmonx Corp is 2.85 times less risky than Tivic Health. It trades about 0.01 of its potential returns per unit of risk. Tivic Health Systems is currently generating about -0.05 per unit of risk. If you would invest  749.00  in Pulmonx Corp on September 22, 2024 and sell it today you would lose (134.00) from holding Pulmonx Corp or give up 17.89% of portfolio value over 90 days.

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

Pulmonx Corp  vs.  Tivic Health Systems

Pulmonx Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Pulmonx Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unsteady performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

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 Pulmonx Corp and Tivic Health

The main advantage of trading using opposite Pulmonx Corp and Tivic Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pulmonx Corp 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 Pulmonx Corp 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.

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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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.