Correlation Between Dynatronics and MiMedx

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

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

Diversification Opportunities for Dynatronics and MiMedx

0.31

Correlation Coefficient

Dynatronics  MiMedx

Weak diversification

The 3 months correlation between Dynatronics and MiMedx is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Dynatronics and MiMedx Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MiMedx Group and Dynatronics 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 Dynatronics are associated (or correlated) with MiMedx. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MiMedx Group has no effect on the direction of Dynatronics i.e., Dynatronics and MiMedx go up and down completely randomly.

Pair Corralation between Dynatronics and MiMedx

Given the investment horizon of 90 days Dynatronics is expected to under-perform the MiMedx. In addition to that, Dynatronics is 1.99 times more volatile than MiMedx Group. It trades about 0.0 of its total potential returns per unit of risk. MiMedx Group is currently generating about 0.02 per unit of volatility. If you would invest  596.00  in MiMedx Group on January 19, 2024 and sell it today you would earn a total of  20.00  from holding MiMedx Group or generate 3.36% return on investment over 90 days.

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

Dynatronics  vs.  MiMedx Group

Dynatronics

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Dynatronics are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unfluctuating basic indicators, Dynatronics unveiled solid returns over the last few months and may actually be approaching a breakup point.

MiMedx Group

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days MiMedx Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unsteady performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in May 2024. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with Dynatronics and MiMedx

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

The idea behind Dynatronics and MiMedx Group 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.