Correlation Between ENVVENO MEDICAL and GERATHERM MEDICAL

Can any of the company-specific risk be diversified away by investing in both ENVVENO MEDICAL and GERATHERM MEDICAL 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 ENVVENO MEDICAL and GERATHERM MEDICAL into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between ENVVENO MEDICAL DL 00001 and GERATHERM MEDICAL, you can compare the effects of market volatilities on ENVVENO MEDICAL and GERATHERM MEDICAL 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 ENVVENO MEDICAL with a short position of GERATHERM MEDICAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of ENVVENO MEDICAL and GERATHERM MEDICAL.

Diversification Opportunities for ENVVENO MEDICAL and GERATHERM MEDICAL

0.82

Correlation Coefficient

ENVVENO MEDICAL  GERATHERM MEDICAL

Very poor diversification

The 3 months correlation between ENVVENO and GERATHERM is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding ENVVENO MEDICAL DL 00001 and GERATHERM MEDICAL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GERATHERM MEDICAL and ENVVENO 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 ENVVENO MEDICAL DL 00001 are associated (or correlated) with GERATHERM MEDICAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GERATHERM MEDICAL has no effect on the direction of ENVVENO MEDICAL i.e., ENVVENO MEDICAL and GERATHERM MEDICAL go up and down completely randomly.

Pair Corralation between ENVVENO MEDICAL and GERATHERM MEDICAL

Assuming the 90 days horizon ENVVENO MEDICAL DL 00001 is expected to generate 2.21 times more return on investment than GERATHERM MEDICAL. However, ENVVENO MEDICAL is 2.21 times more volatile than GERATHERM MEDICAL. It trades about 0.19 of its potential returns per unit of risk. GERATHERM MEDICAL is currently generating about 0.12 per unit of risk. If you would invest  234.00  in ENVVENO MEDICAL DL 00001 on April 24, 2025 and sell it today you would earn a total of  184.00  from holding ENVVENO MEDICAL DL 00001 or generate 78.63% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	100.0%
Values	Daily Returns

ENVVENO MEDICAL DL 00001  vs.  GERATHERM MEDICAL

ENVVENO MEDICAL DL

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in ENVVENO MEDICAL DL 00001 are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, ENVVENO MEDICAL reported solid returns over the last few months and may actually be approaching a breakup point.

GERATHERM MEDICAL

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in GERATHERM MEDICAL are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, GERATHERM MEDICAL unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with ENVVENO MEDICAL and GERATHERM MEDICAL

The main advantage of trading using opposite ENVVENO MEDICAL and GERATHERM MEDICAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ENVVENO MEDICAL position performs unexpectedly, GERATHERM MEDICAL 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 GERATHERM MEDICAL will offset losses from the drop in GERATHERM MEDICAL's long position.

The idea behind ENVVENO MEDICAL DL 00001 and GERATHERM MEDICAL pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.