Correlation Between Treace Medical and ContraFect

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

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

Diversification Opportunities for Treace Medical and ContraFect

0.0

Correlation Coefficient

Treace Medical  ContraFect

Pay attention - limited upside

The 3 months correlation between Treace and ContraFect is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Treace Medical Concepts and ContraFect in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ContraFect and Treace Medical 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 Treace Medical Concepts are associated (or correlated) with ContraFect. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ContraFect has no effect on the direction of Treace Medical i.e., Treace Medical and ContraFect go up and down completely randomly.

Pair Corralation between Treace Medical and ContraFect

If you would invest  629.00  in Treace Medical Concepts on May 21, 2025 and sell it today you would earn a total of  75.00  from holding Treace Medical Concepts or generate 11.92% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Treace Medical Concepts  vs.  ContraFect

Treace Medical Concepts

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Treace Medical Concepts are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite fairly uncertain fundamental indicators, Treace Medical demonstrated solid returns over the last few months and may actually be approaching a breakup point.

ContraFect

Risk-Adjusted Performance

Weakest

Over the last 90 days ContraFect has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, ContraFect is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Treace Medical and ContraFect

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

The idea behind Treace Medical Concepts and ContraFect 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.