Correlation Between Electromed and Dynatronics
Can any of the company-specific risk be diversified away by investing in both Electromed and Dynatronics 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 Electromed and Dynatronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Electromed and Dynatronics, you can compare the effects of market volatilities on Electromed and Dynatronics 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 Electromed with a short position of Dynatronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Electromed and Dynatronics.
Diversification Opportunities for Electromed and Dynatronics
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Electromed and Dynatronics is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Electromed and Dynatronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dynatronics and Electromed 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 Electromed are associated (or correlated) with Dynatronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dynatronics has no effect on the direction of Electromed i.e., Electromed and Dynatronics go up and down completely randomly.
Pair Corralation between Electromed and Dynatronics
Given the investment horizon of 90 days Electromed is expected to generate 2.64 times less return on investment than Dynatronics. But when comparing it to its historical volatility, Electromed is 2.87 times less risky than Dynatronics. It trades about 0.06 of its potential returns per unit of risk. Dynatronics is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 50.00 in Dynatronics on January 25, 2024 and sell it today you would earn a total of 4.00 from holding Dynatronics or generate 8.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Electromed vs. Dynatronics
Performance |
| Timeline |
| Electromed |
| Dynatronics |
Electromed and Dynatronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Electromed and Dynatronics
The main advantage of trading using opposite Electromed and Dynatronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Electromed position performs unexpectedly, Dynatronics 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 Dynatronics will offset losses from the drop in Dynatronics' long position.| Electromed vs. Bone Biologics Corp | Electromed vs. Tivic Health Systems | Electromed vs. Thermogenesis Holdings | Electromed vs. NanoVibronix |
| Dynatronics vs. Bone Biologics Corp | Dynatronics vs. Tivic Health Systems | Dynatronics vs. Thermogenesis Holdings | Dynatronics vs. NanoVibronix |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |