Correlation Between Tivic Health and ConforMIS

Can any of the company-specific risk be diversified away by investing in both Tivic Health and ConforMIS 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 ConforMIS 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 ConforMIS, you can compare the effects of market volatilities on Tivic Health and ConforMIS 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 ConforMIS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tivic Health and ConforMIS.

Diversification Opportunities for Tivic Health and ConforMIS

0.26

Correlation Coefficient

Tivic Health  ConforMIS

Modest diversification

The 3 months correlation between Tivic and ConforMIS is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Tivic Health Systems and ConforMIS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ConforMIS 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 ConforMIS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ConforMIS has no effect on the direction of Tivic Health i.e., Tivic Health and ConforMIS go up and down completely randomly.

Pair Corralation between Tivic Health and ConforMIS

If you would invest  223.00  in ConforMIS on September 2, 2024 and sell it today you would earn a total of  0.00  from holding ConforMIS or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	1.56%
Values	Daily Returns

Tivic Health Systems  vs.  ConforMIS

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.

ConforMIS

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days ConforMIS has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable primary indicators, ConforMIS is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Tivic Health and ConforMIS

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

The idea behind Tivic Health Systems and ConforMIS 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.