Correlation Between Nuwellis and EDAP TMS
Can any of the company-specific risk be diversified away by investing in both Nuwellis and EDAP TMS 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 Nuwellis and EDAP TMS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nuwellis and EDAP TMS SA, you can compare the effects of market volatilities on Nuwellis and EDAP TMS 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 Nuwellis with a short position of EDAP TMS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuwellis and EDAP TMS.
Diversification Opportunities for Nuwellis and EDAP TMS
Poor diversification
The 3 months correlation between Nuwellis and EDAP is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Nuwellis and EDAP TMS SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EDAP TMS SA and Nuwellis 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 Nuwellis are associated (or correlated) with EDAP TMS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EDAP TMS SA has no effect on the direction of Nuwellis i.e., Nuwellis and EDAP TMS go up and down completely randomly.
Pair Corralation between Nuwellis and EDAP TMS
Given the investment horizon of 90 days Nuwellis is expected to under-perform the EDAP TMS. In addition to that, Nuwellis is 6.67 times more volatile than EDAP TMS SA. It trades about -0.07 of its total potential returns per unit of risk. EDAP TMS SA is currently generating about -0.11 per unit of volatility. If you would invest 174.00 in EDAP TMS SA on May 27, 2025 and sell it today you would lose (39.00) from holding EDAP TMS SA or give up 22.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nuwellis vs. EDAP TMS SA
Performance |
| Timeline |
| Nuwellis |
| EDAP TMS SA |
Nuwellis and EDAP TMS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nuwellis and EDAP TMS
The main advantage of trading using opposite Nuwellis and EDAP TMS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuwellis position performs unexpectedly, EDAP TMS 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 EDAP TMS will offset losses from the drop in EDAP TMS's long position.| Nuwellis vs. SINTX Technologies | Nuwellis vs. Bone Biologics Corp | Nuwellis vs. Tivic Health Systems | Nuwellis 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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