Correlation Between Vivos Therapeutics and Cerus

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

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

Diversification Opportunities for Vivos Therapeutics and Cerus

0.16

Correlation Coefficient

Vivos Therapeutics  Cerus

Average diversification

The 3 months correlation between Vivos and Cerus is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Vivos Therapeutics and Cerus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cerus and Vivos Therapeutics 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 Vivos Therapeutics are associated (or correlated) with Cerus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cerus has no effect on the direction of Vivos Therapeutics i.e., Vivos Therapeutics and Cerus go up and down completely randomly.

Pair Corralation between Vivos Therapeutics and Cerus

Given the investment horizon of 90 days Vivos Therapeutics is expected to generate 1.17 times more return on investment than Cerus. However, Vivos Therapeutics is 1.17 times more volatile than Cerus. It trades about 0.17 of its potential returns per unit of risk. Cerus is currently generating about -0.02 per unit of risk. If you would invest  293.00  in Vivos Therapeutics on September 21, 2024 and sell it today you would earn a total of  173.00  from holding Vivos Therapeutics or generate 59.04% return on investment over 90 days.

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

Vivos Therapeutics  vs.  Cerus

Vivos Therapeutics

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Vivos Therapeutics are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively conflicting basic indicators, Vivos Therapeutics unveiled solid returns over the last few months and may actually be approaching a breakup point.

Cerus

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Vivos Therapeutics and Cerus

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

The idea behind Vivos Therapeutics and Cerus 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.