Correlation Between Blue Sail and Apyx Medical

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Can any of the company-specific risk be diversified away by investing in both Blue Sail and Apyx 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 Blue Sail and Apyx Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blue Sail Medical and Apyx Medical, you can compare the effects of market volatilities on Blue Sail and Apyx 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 Blue Sail with a short position of Apyx Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blue Sail and Apyx Medical.

Diversification Opportunities for Blue Sail and Apyx Medical

-0.43
  Correlation Coefficient

Very good diversification

The 3 months correlation between Blue and Apyx is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Blue Sail Medical and Apyx Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apyx Medical and Blue Sail 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 Blue Sail Medical are associated (or correlated) with Apyx Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apyx Medical has no effect on the direction of Blue Sail i.e., Blue Sail and Apyx Medical go up and down completely randomly.

Pair Corralation between Blue Sail and Apyx Medical

Assuming the 90 days trading horizon Blue Sail Medical is expected to under-perform the Apyx Medical. But the stock apears to be less risky and, when comparing its historical volatility, Blue Sail Medical is 4.26 times less risky than Apyx Medical. The stock trades about -0.05 of its potential returns per unit of risk. The Apyx Medical is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest  192.00  in Apyx Medical on August 31, 2025 and sell it today you would earn a total of  209.00  from holding Apyx Medical or generate 108.85% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy93.65%
ValuesDaily Returns

Blue Sail Medical  vs.  Apyx Medical

 Performance 
       Timeline  
Blue Sail Medical 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Blue Sail Medical has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Blue Sail is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
Apyx Medical 

Risk-Adjusted Performance

Solid

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Apyx Medical are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. In spite of fairly fragile basic indicators, Apyx Medical showed solid returns over the last few months and may actually be approaching a breakup point.

Blue Sail and Apyx Medical Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Blue Sail and Apyx Medical

The main advantage of trading using opposite Blue Sail and Apyx Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blue Sail position performs unexpectedly, Apyx 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 Apyx Medical will offset losses from the drop in Apyx Medical's long position.
The idea behind Blue Sail Medical and Apyx 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.
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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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.

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