Correlation Between Sight Sciences and Anteris Technologies

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

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

Diversification Opportunities for Sight Sciences and Anteris Technologies

0.87

Correlation Coefficient

Sight Sciences  Anteris Technologies

Very poor diversification

The 3 months correlation between Sight and Anteris is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Sight Sciences and Anteris Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anteris Technologies and Sight Sciences 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 Sight Sciences are associated (or correlated) with Anteris Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anteris Technologies has no effect on the direction of Sight Sciences i.e., Sight Sciences and Anteris Technologies go up and down completely randomly.

Pair Corralation between Sight Sciences and Anteris Technologies

Given the investment horizon of 90 days Sight Sciences is expected to under-perform the Anteris Technologies. But the stock apears to be less risky and, when comparing its historical volatility, Sight Sciences is 1.29 times less risky than Anteris Technologies. The stock trades about -0.18 of its potential returns per unit of risk. The Anteris Technologies is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest  750.00  in Anteris Technologies on September 5, 2024 and sell it today you would lose (80.00) from holding Anteris Technologies or give up 10.67% of portfolio value over 90 days.

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

Sight Sciences  vs.  Anteris Technologies

Sight Sciences

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Sight Sciences 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 technical indicators remain comparatively stable which may send shares a bit higher in January 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Anteris Technologies

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Anteris Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Anteris Technologies is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Sight Sciences and Anteris Technologies

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

The idea behind Sight Sciences and Anteris Technologies 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.