Correlation Between Rxsight and CONMED
Can any of the company-specific risk be diversified away by investing in both Rxsight and CONMED 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 Rxsight and CONMED into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Rxsight and CONMED, you can compare the effects of market volatilities on Rxsight and CONMED 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 Rxsight with a short position of CONMED. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rxsight and CONMED.
Diversification Opportunities for Rxsight and CONMED
Very good diversification
The 3 months correlation between Rxsight and CONMED is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Rxsight and CONMED in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CONMED and Rxsight 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 Rxsight are associated (or correlated) with CONMED. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CONMED has no effect on the direction of Rxsight i.e., Rxsight and CONMED go up and down completely randomly.
Pair Corralation between Rxsight and CONMED
Given the investment horizon of 90 days Rxsight is expected to generate 1.16 times more return on investment than CONMED. However, Rxsight is 1.16 times more volatile than CONMED. It trades about 0.04 of its potential returns per unit of risk. CONMED is currently generating about -0.03 per unit of risk. If you would invest 5,607 in Rxsight on March 4, 2024 and sell it today you would earn a total of 240.00 from holding Rxsight or generate 4.28% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Rxsight vs. CONMED
Performance |
Timeline |
Rxsight |
CONMED |
Rxsight and CONMED Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Rxsight and CONMED
The main advantage of trading using opposite Rxsight and CONMED positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rxsight position performs unexpectedly, CONMED 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 CONMED will offset losses from the drop in CONMED's long position.Rxsight vs. Axogen Inc | Rxsight vs. Treace Medical Concepts | Rxsight vs. PulmonxCorp | Rxsight vs. Orthofix Medical |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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