Correlation Between ReShape Lifesciences and Nuwellis
Can any of the company-specific risk be diversified away by investing in both ReShape Lifesciences and Nuwellis 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 ReShape Lifesciences and Nuwellis into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ReShape Lifesciences and Nuwellis, you can compare the effects of market volatilities on ReShape Lifesciences and Nuwellis 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 ReShape Lifesciences with a short position of Nuwellis. Check out your portfolio center. Please also check ongoing floating volatility patterns of ReShape Lifesciences and Nuwellis.
Diversification Opportunities for ReShape Lifesciences and Nuwellis
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between ReShape and Nuwellis is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding ReShape Lifesciences and Nuwellis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuwellis and ReShape Lifesciences 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 ReShape Lifesciences are associated (or correlated) with Nuwellis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuwellis has no effect on the direction of ReShape Lifesciences i.e., ReShape Lifesciences and Nuwellis go up and down completely randomly.
Pair Corralation between ReShape Lifesciences and Nuwellis
Given the investment horizon of 90 days ReShape Lifesciences is expected to under-perform the Nuwellis. But the stock apears to be less risky and, when comparing its historical volatility, ReShape Lifesciences is 1.56 times less risky than Nuwellis. The stock trades about -0.08 of its potential returns per unit of risk. The Nuwellis is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 3,990 in Nuwellis on April 26, 2025 and sell it today you would lose (2,690) from holding Nuwellis or give up 67.42% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
ReShape Lifesciences vs. Nuwellis
Performance |
| Timeline |
| ReShape Lifesciences |
| Nuwellis |
ReShape Lifesciences and Nuwellis Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ReShape Lifesciences and Nuwellis
The main advantage of trading using opposite ReShape Lifesciences and Nuwellis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ReShape Lifesciences position performs unexpectedly, Nuwellis 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 Nuwellis will offset losses from the drop in Nuwellis' long position.| ReShape Lifesciences vs. Nuwellis | ReShape Lifesciences vs. SINTX Technologies | ReShape Lifesciences vs. NanoVibronix | ReShape Lifesciences vs. Palisade Bio |
| Nuwellis vs. SINTX Technologies | Nuwellis vs. ReShape Lifesciences | Nuwellis vs. Bone Biologics Corp | Nuwellis vs. Tivic Health Systems |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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