Correlation Between Tivic Health and Apyx Medical

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

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

Diversification Opportunities for Tivic Health and Apyx Medical

-0.22

Correlation Coefficient

Tivic Health  Apyx Medical

Very good diversification

The 3 months correlation between Tivic and Apyx is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Tivic Health Systems and Apyx Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apyx Medical and Tivic Health 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 Tivic Health Systems are associated (or correlated) with Apyx Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apyx Medical has no effect on the direction of Tivic Health i.e., Tivic Health and Apyx Medical go up and down completely randomly.

Pair Corralation between Tivic Health and Apyx Medical

Given the investment horizon of 90 days Tivic Health Systems is expected to under-perform the Apyx Medical. In addition to that, Tivic Health is 1.76 times more volatile than Apyx Medical. It trades about -0.05 of its total potential returns per unit of risk. Apyx Medical is currently generating about 0.02 per unit of volatility. If you would invest  252.00  in Apyx Medical on September 22, 2024 and sell it today you would lose (95.00) from holding Apyx Medical or give up 37.7% of portfolio value over 90 days.

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

Tivic Health Systems  vs.  Apyx Medical

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.

Apyx Medical

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Apyx Medical are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unsteady basic indicators, Apyx Medical showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Tivic Health and Apyx Medical

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

The idea behind Tivic Health Systems and Apyx 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.

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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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.