Correlation Between Tenon Medical and Nihon Kohden

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

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

Diversification Opportunities for Tenon Medical and Nihon Kohden

-0.23

Correlation Coefficient

Tenon Medical  Nihon Kohden

Very good diversification

The 3 months correlation between Tenon and Nihon is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Tenon Medical and Nihon Kohden Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nihon Kohden Corp and Tenon 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 Tenon Medical are associated (or correlated) with Nihon Kohden. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nihon Kohden Corp has no effect on the direction of Tenon Medical i.e., Tenon Medical and Nihon Kohden go up and down completely randomly.

Pair Corralation between Tenon Medical and Nihon Kohden

Given the investment horizon of 90 days Tenon Medical is expected to generate 0.88 times more return on investment than Nihon Kohden. However, Tenon Medical is 1.13 times less risky than Nihon Kohden. It trades about 0.09 of its potential returns per unit of risk. Nihon Kohden Corp is currently generating about 0.02 per unit of risk. If you would invest  109.00  in Tenon Medical on May 7, 2025 and sell it today you would earn a total of  31.00  from holding Tenon Medical or generate 28.44% return on investment over 90 days.

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

Tenon Medical  vs.  Nihon Kohden Corp

Tenon Medical

Risk-Adjusted Performance

Mild

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

Nihon Kohden Corp

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Nihon Kohden Corp are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of fairly fragile forward-looking signals, Nihon Kohden may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Tenon Medical and Nihon Kohden

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

The idea behind Tenon Medical and Nihon Kohden Corp 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.