Correlation Between Beyond Air and Myomo
Can any of the company-specific risk be diversified away by investing in both Beyond Air and Myomo 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 Beyond Air and Myomo into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Beyond Air and Myomo Inc, you can compare the effects of market volatilities on Beyond Air and Myomo 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 Beyond Air with a short position of Myomo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beyond Air and Myomo.
Diversification Opportunities for Beyond Air and Myomo
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Beyond and Myomo is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Beyond Air and Myomo Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Myomo Inc and Beyond Air 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 Beyond Air are associated (or correlated) with Myomo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Myomo Inc has no effect on the direction of Beyond Air i.e., Beyond Air and Myomo go up and down completely randomly.
Pair Corralation between Beyond Air and Myomo
Given the investment horizon of 90 days Beyond Air is expected to under-perform the Myomo. But the stock apears to be less risky and, when comparing its historical volatility, Beyond Air is 1.08 times less risky than Myomo. The stock trades about -0.02 of its potential returns per unit of risk. The Myomo Inc is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 221.00 in Myomo Inc on February 9, 2024 and sell it today you would earn a total of 172.00 from holding Myomo Inc or generate 77.83% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 99.19% |
Values | Daily Returns |
Beyond Air vs. Myomo Inc
Performance |
Timeline |
Beyond Air |
Myomo Inc |
Beyond Air and Myomo Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Beyond Air and Myomo
The main advantage of trading using opposite Beyond Air and Myomo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beyond Air position performs unexpectedly, Myomo 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 Myomo will offset losses from the drop in Myomo's long position.Beyond Air vs. Masimo | Beyond Air vs. Glaukos Corp | Beyond Air vs. 908 Devices | Beyond Air vs. Monogram Orthopaedics Common |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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