Correlation Between Orchestra BioMed and Electromed
Can any of the company-specific risk be diversified away by investing in both Orchestra BioMed and Electromed 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 Orchestra BioMed and Electromed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Orchestra BioMed Holdings and Electromed, you can compare the effects of market volatilities on Orchestra BioMed and Electromed 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 Orchestra BioMed with a short position of Electromed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Orchestra BioMed and Electromed.
Diversification Opportunities for Orchestra BioMed and Electromed
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Orchestra and Electromed is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Orchestra BioMed Holdings and Electromed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Electromed and Orchestra BioMed 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 Orchestra BioMed Holdings are associated (or correlated) with Electromed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Electromed has no effect on the direction of Orchestra BioMed i.e., Orchestra BioMed and Electromed go up and down completely randomly.
Pair Corralation between Orchestra BioMed and Electromed
Given the investment horizon of 90 days Orchestra BioMed Holdings is expected to generate 2.5 times more return on investment than Electromed. However, Orchestra BioMed is 2.5 times more volatile than Electromed. It trades about 0.17 of its potential returns per unit of risk. Electromed is currently generating about 0.16 per unit of risk. If you would invest 257.00 in Orchestra BioMed Holdings on September 12, 2025 and sell it today you would earn a total of 163.00 from holding Orchestra BioMed Holdings or generate 63.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Orchestra BioMed Holdings vs. Electromed
Performance |
| Timeline |
| Orchestra BioMed Holdings |
| Electromed |
Orchestra BioMed and Electromed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Orchestra BioMed and Electromed
The main advantage of trading using opposite Orchestra BioMed and Electromed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Orchestra BioMed position performs unexpectedly, Electromed 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 Electromed will offset losses from the drop in Electromed's long position.| Orchestra BioMed vs. Prelude Therapeutics | Orchestra BioMed vs. Inventiva Sa | Orchestra BioMed vs. Caribou Biosciences | Orchestra BioMed vs. Enanta Pharmaceuticals |
| Electromed vs. Perspective Therapeutics | Electromed vs. Helius Medical Technologies | Electromed vs. Nano X Imaging | Electromed vs. Inogen Inc |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |