Correlation Between Tenon Medical and Anteris Technologies

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

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

Diversification Opportunities for Tenon Medical and Anteris Technologies

0.76

Correlation Coefficient

Tenon Medical  Anteris Technologies

Poor diversification

The 3 months correlation between Tenon and Anteris is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Tenon Medical and Anteris Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anteris Technologies and Tenon Medical 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 Tenon Medical 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 Tenon Medical i.e., Tenon Medical and Anteris Technologies go up and down completely randomly.

Pair Corralation between Tenon Medical and Anteris Technologies

Given the investment horizon of 90 days Tenon Medical is expected to under-perform the Anteris Technologies. In addition to that, Tenon Medical is 2.64 times more volatile than Anteris Technologies. It trades about -0.03 of its total potential returns per unit of risk. Anteris Technologies is currently generating about -0.01 per unit of volatility. 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	Significant
Accuracy	98.44%
Values	Daily Returns

Tenon Medical  vs.  Anteris Technologies

Tenon Medical

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Tenon Medical has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in January 2025. The recent disarray may also be a sign of long period up-swing for the firm 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 Tenon Medical and Anteris Technologies

The main advantage of trading using opposite Tenon Medical and Anteris Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tenon Medical 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 Tenon Medical 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.