Correlation Between Sight Sciences and EDAP TMS
Can any of the company-specific risk be diversified away by investing in both Sight Sciences and EDAP TMS 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 Sight Sciences and EDAP TMS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sight Sciences and EDAP TMS SA, you can compare the effects of market volatilities on Sight Sciences and EDAP TMS 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 Sight Sciences with a short position of EDAP TMS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sight Sciences and EDAP TMS.
Diversification Opportunities for Sight Sciences and EDAP TMS
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sight and EDAP is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Sight Sciences and EDAP TMS SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EDAP TMS SA and Sight Sciences 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 Sight Sciences are associated (or correlated) with EDAP TMS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EDAP TMS SA has no effect on the direction of Sight Sciences i.e., Sight Sciences and EDAP TMS go up and down completely randomly.
Pair Corralation between Sight Sciences and EDAP TMS
Given the investment horizon of 90 days Sight Sciences is expected to generate 1.17 times more return on investment than EDAP TMS. However, Sight Sciences is 1.17 times more volatile than EDAP TMS SA. It trades about 0.05 of its potential returns per unit of risk. EDAP TMS SA is currently generating about -0.08 per unit of risk. If you would invest 329.00 in Sight Sciences on April 24, 2025 and sell it today you would earn a total of 28.00 from holding Sight Sciences or generate 8.51% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 98.39% |
Values | Daily Returns |
Sight Sciences vs. EDAP TMS SA
Performance |
Timeline |
Sight Sciences |
EDAP TMS SA |
Sight Sciences and EDAP TMS Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Sight Sciences and EDAP TMS
The main advantage of trading using opposite Sight Sciences and EDAP TMS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sight Sciences position performs unexpectedly, EDAP TMS 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 EDAP TMS will offset losses from the drop in EDAP TMS's long position.Sight Sciences vs. Rxsight | Sight Sciences vs. Axogen Inc | Sight Sciences vs. Treace Medical Concepts | Sight Sciences vs. Pulmonx Corp |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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