Correlation Between Volitionrx and Tenon Medical

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

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

Diversification Opportunities for Volitionrx and Tenon Medical

-0.54

Correlation Coefficient

Volitionrx  Tenon Medical

Excellent diversification

The 3 months correlation between Volitionrx and Tenon is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Volitionrx and Tenon Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tenon Medical and Volitionrx 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 Volitionrx are associated (or correlated) with Tenon Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tenon Medical has no effect on the direction of Volitionrx i.e., Volitionrx and Tenon Medical go up and down completely randomly.

Pair Corralation between Volitionrx and Tenon Medical

Given the investment horizon of 90 days Volitionrx is expected to generate 1.1 times less return on investment than Tenon Medical. In addition to that, Volitionrx is 1.11 times more volatile than Tenon Medical. It trades about 0.08 of its total potential returns per unit of risk. Tenon Medical is currently generating about 0.1 per unit of volatility. If you would invest  110.00  in Tenon Medical on May 6, 2025 and sell it today you would earn a total of  36.00  from holding Tenon Medical or generate 32.73% return on investment over 90 days.

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

Volitionrx  vs.  Tenon Medical

Volitionrx

Risk-Adjusted Performance

Modest

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

Tenon Medical

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Tenon Medical are ranked lower than 7 (%) 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.

Pair Trading with Volitionrx and Tenon Medical

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

The idea behind Volitionrx and Tenon Medical 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.