Correlation Between ProSomnus, Common and Tenon Medical

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

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

Diversification Opportunities for ProSomnus, Common and Tenon Medical

-0.25

Correlation Coefficient

ProSomnus, Common  Tenon Medical

Very good diversification

The 3 months correlation between ProSomnus, and Tenon is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding ProSomnus, Common Stock and Tenon Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tenon Medical and ProSomnus, Common 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 ProSomnus, Common Stock 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 ProSomnus, Common i.e., ProSomnus, Common and Tenon Medical go up and down completely randomly.

Pair Corralation between ProSomnus, Common and Tenon Medical

Considering the 90-day investment horizon ProSomnus, Common Stock is expected to generate 11.88 times more return on investment than Tenon Medical. However, ProSomnus, Common is 11.88 times more volatile than Tenon Medical. It trades about 0.14 of its potential returns per unit of risk. Tenon Medical is currently generating about -0.02 per unit of risk. If you would invest  2.80  in ProSomnus, Common Stock on September 2, 2024 and sell it today you would earn a total of  44.20  from holding ProSomnus, Common Stock or generate 1578.57% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	49.21%
Values	Daily Returns

ProSomnus, Common Stock  vs.  Tenon Medical

ProSomnus, Common Stock

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days ProSomnus, Common Stock has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, ProSomnus, Common is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Tenon Medical

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Tenon Medical has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Tenon Medical is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with ProSomnus, Common and Tenon Medical

The main advantage of trading using opposite ProSomnus, Common and Tenon Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProSomnus, Common 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.

The idea behind ProSomnus, Common Stock and Tenon 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.

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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.