Correlation Between CONMED and ProSomnus, Common

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

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

Diversification Opportunities for CONMED and ProSomnus, Common

0.17

Correlation Coefficient

CONMED  ProSomnus, Common

Average diversification

The 3 months correlation between CONMED and ProSomnus, is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding CONMED and ProSomnus, Common Stock in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProSomnus, Common Stock and CONMED 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 CONMED are associated (or correlated) with ProSomnus, Common. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProSomnus, Common Stock has no effect on the direction of CONMED i.e., CONMED and ProSomnus, Common go up and down completely randomly.

Pair Corralation between CONMED and ProSomnus, Common

Given the investment horizon of 90 days CONMED is expected to generate 0.05 times more return on investment than ProSomnus, Common. However, CONMED is 21.18 times less risky than ProSomnus, Common. It trades about 0.13 of its potential returns per unit of risk. ProSomnus, Common Stock is currently generating about -0.5 per unit of risk. If you would invest  7,054  in CONMED on June 29, 2024 and sell it today you would earn a total of  422.00  from holding CONMED or generate 5.98% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	18.18%
Values	Daily Returns

CONMED  vs.  ProSomnus, Common Stock

CONMED

Risk-Adjusted Performance

6 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in CONMED are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak primary indicators, CONMED exhibited solid returns over the last few months and may actually be approaching a breakup point.

ProSomnus, Common Stock

Risk-Adjusted Performance

0 of 100

Good

Over the last 90 days ProSomnus, Common Stock has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat inconsistent basic indicators, ProSomnus, Common sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with CONMED and ProSomnus, Common

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

The idea behind CONMED and ProSomnus, Common Stock 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.

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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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.