Correlation Between Elutia and Sight Sciences

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

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

Diversification Opportunities for Elutia and Sight Sciences

-0.18

Correlation Coefficient

Elutia  Sight Sciences

Good diversification

The 3 months correlation between Elutia and Sight is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Elutia Inc and Sight Sciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sight Sciences and Elutia 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 Elutia Inc are associated (or correlated) with Sight Sciences. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sight Sciences has no effect on the direction of Elutia i.e., Elutia and Sight Sciences go up and down completely randomly.

Pair Corralation between Elutia and Sight Sciences

Given the investment horizon of 90 days Elutia is expected to generate 1.14 times less return on investment than Sight Sciences. In addition to that, Elutia is 1.15 times more volatile than Sight Sciences. It trades about 0.05 of its total potential returns per unit of risk. Sight Sciences is currently generating about 0.06 per unit of volatility. If you would invest  293.00  in Sight Sciences on May 5, 2025 and sell it today you would earn a total of  34.00  from holding Sight Sciences or generate 11.6% return on investment over 90 days.

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

Elutia Inc  vs.  Sight Sciences

Elutia Inc

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Elutia Inc are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile basic indicators, Elutia unveiled solid returns over the last few months and may actually be approaching a breakup point.

Sight Sciences

Risk-Adjusted Performance

Insignificant

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

Pair Trading with Elutia and Sight Sciences

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

The idea behind Elutia Inc and Sight Sciences 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.