Correlation Between Avista and Senseonics Holdings

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

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

Diversification Opportunities for Avista and Senseonics Holdings

-0.61

Correlation Coefficient

Avista  Senseonics Holdings

Excellent diversification

The 3 months correlation between Avista and Senseonics is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Avista and Senseonics Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Senseonics Holdings and Avista 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 Avista are associated (or correlated) with Senseonics Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Senseonics Holdings has no effect on the direction of Avista i.e., Avista and Senseonics Holdings go up and down completely randomly.

Pair Corralation between Avista and Senseonics Holdings

Considering the 90-day investment horizon Avista is expected to generate 0.22 times more return on investment than Senseonics Holdings. However, Avista is 4.55 times less risky than Senseonics Holdings. It trades about 0.02 of its potential returns per unit of risk. Senseonics Holdings is currently generating about -0.09 per unit of risk. If you would invest  3,769  in Avista on August 4, 2025 and sell it today you would earn a total of  36.00  from holding Avista or generate 0.96% return on investment over 90 days.

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

Avista  vs.  Senseonics Holdings

Avista

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Avista are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Avista is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Senseonics Holdings

Risk-Adjusted Performance

Weakest

Over the last 90 days Senseonics Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in December 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Avista and Senseonics Holdings

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

The idea behind Avista and Senseonics Holdings 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.