Correlation Between Varex Imaging and Penumbra
Can any of the company-specific risk be diversified away by investing in both Varex Imaging and Penumbra 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 Varex Imaging and Penumbra into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Varex Imaging Corp and Penumbra, you can compare the effects of market volatilities on Varex Imaging and Penumbra 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 Varex Imaging with a short position of Penumbra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Varex Imaging and Penumbra.
Diversification Opportunities for Varex Imaging and Penumbra
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Varex and Penumbra is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Varex Imaging Corp and Penumbra in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Penumbra and Varex Imaging 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 Varex Imaging Corp are associated (or correlated) with Penumbra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Penumbra has no effect on the direction of Varex Imaging i.e., Varex Imaging and Penumbra go up and down completely randomly.
Pair Corralation between Varex Imaging and Penumbra
Given the investment horizon of 90 days Varex Imaging is expected to generate 3.3 times less return on investment than Penumbra. In addition to that, Varex Imaging is 1.06 times more volatile than Penumbra. It trades about 0.02 of its total potential returns per unit of risk. Penumbra is currently generating about 0.06 per unit of volatility. If you would invest 26,950 in Penumbra on September 2, 2025 and sell it today you would earn a total of 2,426 from holding Penumbra or generate 9.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Varex Imaging Corp vs. Penumbra
Performance |
| Timeline |
| Varex Imaging Corp |
| Penumbra |
Varex Imaging and Penumbra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Varex Imaging and Penumbra
The main advantage of trading using opposite Varex Imaging and Penumbra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Varex Imaging position performs unexpectedly, Penumbra 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 Penumbra will offset losses from the drop in Penumbra's long position.| Varex Imaging vs. Hooker Furniture | Varex Imaging vs. Paiute Oil Mining | Varex Imaging vs. City Office REIT | Varex Imaging vs. Beazer Homes USA |
| Penumbra vs. Avidus Management Group | Penumbra vs. Commercial Vehicle Group | Penumbra vs. Xiabuxiabu Catering Management | Penumbra vs. Strategic Management and |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |