Correlation Between Tenon Medical, and UFP Technologies

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

By analyzing existing cross correlation between Tenon Medical, Warrant and UFP Technologies, you can compare the effects of market volatilities on Tenon Medical, and UFP Technologies 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 UFP Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tenon Medical, and UFP Technologies.

Diversification Opportunities for Tenon Medical, and UFP Technologies

-0.21

Correlation Coefficient

Tenon Medical,  UFP Technologies

Very good diversification

The 3 months correlation between Tenon and UFP is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Tenon Medical, Warrant and UFP Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UFP Technologies 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, Warrant are associated (or correlated) with UFP Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UFP Technologies has no effect on the direction of Tenon Medical, i.e., Tenon Medical, and UFP Technologies go up and down completely randomly.

Pair Corralation between Tenon Medical, and UFP Technologies

Assuming the 90 days horizon Tenon Medical, Warrant is expected to generate 4.64 times more return on investment than UFP Technologies. However, Tenon Medical, is 4.64 times more volatile than UFP Technologies. It trades about 0.07 of its potential returns per unit of risk. UFP Technologies is currently generating about 0.03 per unit of risk. If you would invest  1.80  in Tenon Medical, Warrant on May 6, 2025 and sell it today you would earn a total of  0.22  from holding Tenon Medical, Warrant or generate 12.22% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	83.87%
Values	Daily Returns

Tenon Medical, Warrant  vs.  UFP Technologies

Tenon Medical, Warrant

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Tenon Medical, Warrant are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, Tenon Medical, showed solid returns over the last few months and may actually be approaching a breakup point.

UFP Technologies

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in UFP Technologies are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, UFP Technologies is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Tenon Medical, and UFP Technologies

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

The idea behind Tenon Medical, Warrant and UFP Technologies 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..