Correlation Between ReShape Lifesciences and Haemonetics

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Can any of the company-specific risk be diversified away by investing in both ReShape Lifesciences and Haemonetics 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 ReShape Lifesciences and Haemonetics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ReShape Lifesciences and Haemonetics, you can compare the effects of market volatilities on ReShape Lifesciences and Haemonetics 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 ReShape Lifesciences with a short position of Haemonetics. Check out your portfolio center. Please also check ongoing floating volatility patterns of ReShape Lifesciences and Haemonetics.

Diversification Opportunities for ReShape Lifesciences and Haemonetics

-0.86
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between ReShape and Haemonetics is -0.86. Overlapping area represents the amount of risk that can be diversified away by holding ReShape Lifesciences and Haemonetics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haemonetics and ReShape Lifesciences 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 ReShape Lifesciences are associated (or correlated) with Haemonetics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Haemonetics has no effect on the direction of ReShape Lifesciences i.e., ReShape Lifesciences and Haemonetics go up and down completely randomly.

Pair Corralation between ReShape Lifesciences and Haemonetics

Given the investment horizon of 90 days ReShape Lifesciences is expected to under-perform the Haemonetics. In addition to that, ReShape Lifesciences is 8.18 times more volatile than Haemonetics. It trades about -0.12 of its total potential returns per unit of risk. Haemonetics is currently generating about 0.19 per unit of volatility. If you would invest  6,249  in Haemonetics on May 4, 2025 and sell it today you would earn a total of  1,228  from holding Haemonetics or generate 19.65% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

ReShape Lifesciences  vs.  Haemonetics

 Performance 
       Timeline  
ReShape Lifesciences 

Risk-Adjusted Performance

Very Weak

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

Risk-Adjusted Performance

Good

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Haemonetics are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of rather inconsistent basic indicators, Haemonetics exhibited solid returns over the last few months and may actually be approaching a breakup point.

ReShape Lifesciences and Haemonetics Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with ReShape Lifesciences and Haemonetics

The main advantage of trading using opposite ReShape Lifesciences and Haemonetics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ReShape Lifesciences position performs unexpectedly, Haemonetics 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 Haemonetics will offset losses from the drop in Haemonetics' long position.
The idea behind ReShape Lifesciences and Haemonetics 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.

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