Correlation Between EDAP TMS and Forian
Can any of the company-specific risk be diversified away by investing in both EDAP TMS and Forian 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 EDAP TMS and Forian into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EDAP TMS SA and Forian Inc, you can compare the effects of market volatilities on EDAP TMS and Forian 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 EDAP TMS with a short position of Forian. Check out your portfolio center. Please also check ongoing floating volatility patterns of EDAP TMS and Forian.
Diversification Opportunities for EDAP TMS and Forian
Poor diversification
The 3 months correlation between EDAP and Forian is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding EDAP TMS SA and Forian Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Forian Inc and EDAP TMS 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 EDAP TMS SA are associated (or correlated) with Forian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Forian Inc has no effect on the direction of EDAP TMS i.e., EDAP TMS and Forian go up and down completely randomly.
Pair Corralation between EDAP TMS and Forian
Given the investment horizon of 90 days EDAP TMS SA is expected to under-perform the Forian. In addition to that, EDAP TMS is 1.08 times more volatile than Forian Inc. It trades about -0.11 of its total potential returns per unit of risk. Forian Inc is currently generating about -0.1 per unit of volatility. If you would invest 217.00 in Forian Inc on May 24, 2025 and sell it today you would lose (42.00) from holding Forian Inc or give up 19.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
EDAP TMS SA vs. Forian Inc
Performance |
| Timeline |
| EDAP TMS SA |
| Forian Inc |
EDAP TMS and Forian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EDAP TMS and Forian
The main advantage of trading using opposite EDAP TMS and Forian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EDAP TMS position performs unexpectedly, Forian 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 Forian will offset losses from the drop in Forian's long position.| EDAP TMS vs. Nuwellis | EDAP TMS vs. SINTX Technologies | EDAP TMS vs. NanoVibronix | EDAP TMS vs. Palisade Bio |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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