Correlation Between Xtant Medical and Penumbra
Can any of the company-specific risk be diversified away by investing in both Xtant Medical 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 Xtant Medical and Penumbra into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xtant Medical Holdings and Penumbra, you can compare the effects of market volatilities on Xtant Medical 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 Xtant Medical with a short position of Penumbra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xtant Medical and Penumbra.
Diversification Opportunities for Xtant Medical and Penumbra
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Xtant and Penumbra is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Xtant Medical Holdings and Penumbra in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Penumbra and Xtant Medical 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 Xtant Medical Holdings 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 Xtant Medical i.e., Xtant Medical and Penumbra go up and down completely randomly.
Pair Corralation between Xtant Medical and Penumbra
Given the investment horizon of 90 days Xtant Medical Holdings is expected to generate 1.51 times more return on investment than Penumbra. However, Xtant Medical is 1.51 times more volatile than Penumbra. It trades about 0.09 of its potential returns per unit of risk. Penumbra is currently generating about 0.03 per unit of risk. If you would invest 62.00 in Xtant Medical Holdings on September 11, 2025 and sell it today you would earn a total of 12.00 from holding Xtant Medical Holdings or generate 19.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xtant Medical Holdings vs. Penumbra
Performance |
| Timeline |
| Xtant Medical Holdings |
| Penumbra |
Xtant Medical and Penumbra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xtant Medical and Penumbra
The main advantage of trading using opposite Xtant Medical and Penumbra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xtant Medical 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.| Xtant Medical vs. Apyx Medical | Xtant Medical vs. Quipt Home Medical | Xtant Medical vs. Avita Medical | Xtant Medical vs. Vivani Medical |
| Penumbra vs. Globus Medical | Penumbra vs. Bio Rad Laboratories | Penumbra vs. Align Technology | Penumbra vs. HealthEquity |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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