Correlation Between Sight Sciences and CONMED

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

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

Diversification Opportunities for Sight Sciences and CONMED

0.01

Correlation Coefficient

Sight Sciences  CONMED

Significant diversification

The 3 months correlation between Sight and CONMED is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Sight Sciences and CONMED in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CONMED 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 CONMED. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CONMED has no effect on the direction of Sight Sciences i.e., Sight Sciences and CONMED go up and down completely randomly.

Pair Corralation between Sight Sciences and CONMED

Given the investment horizon of 90 days Sight Sciences is expected to under-perform the CONMED. In addition to that, Sight Sciences is 1.66 times more volatile than CONMED. It trades about -0.18 of its total potential returns per unit of risk. CONMED is currently generating about 0.01 per unit of volatility. If you would invest  7,303  in CONMED on August 30, 2024 and sell it today you would earn a total of  13.00  from holding CONMED or generate 0.18% return on investment over 90 days.

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

Sight Sciences  vs.  CONMED

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 unfluctuating performance in the last few months, the Stock's technical indicators remain comparatively stable which may send shares a bit higher in December 2024. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

CONMED

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in CONMED are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound primary indicators, CONMED is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Sight Sciences and CONMED

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

The idea behind Sight Sciences and CONMED 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.