Correlation Between Tivic Health and GN Store

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

Diversification Opportunities for Tivic Health and GN Store

0.11

Correlation Coefficient

Tivic Health  GN Store

Average diversification

The 3 months correlation between Tivic and GGNDF is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Tivic Health Systems and GN Store Nord in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GN Store Nord 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 GN Store. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GN Store Nord has no effect on the direction of Tivic Health i.e., Tivic Health and GN Store go up and down completely randomly.

Pair Corralation between Tivic Health and GN Store

Given the investment horizon of 90 days Tivic Health Systems is expected to generate 4.52 times more return on investment than GN Store. However, Tivic Health is 4.52 times more volatile than GN Store Nord. It trades about 0.04 of its potential returns per unit of risk. GN Store Nord is currently generating about -0.22 per unit of risk. If you would invest  29.00  in Tivic Health Systems on September 4, 2024 and sell it today you would lose (2.00) from holding Tivic Health Systems or give up 6.9% of portfolio value over 90 days.

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

Tivic Health Systems  vs.  GN Store Nord

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.

GN Store Nord

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days GN Store Nord has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's fundamental indicators remain nearly stable which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with Tivic Health and GN Store

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

The idea behind Tivic Health Systems and GN Store Nord 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.