Correlation Between Asensus Surgical and Penumbra

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

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

Diversification Opportunities for Asensus Surgical and Penumbra

0.0

Correlation Coefficient

Asensus Surgical  Penumbra

Pay attention - limited upside

The 3 months correlation between Asensus and Penumbra is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Asensus Surgical and Penumbra in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Penumbra and Asensus Surgical 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 Asensus Surgical 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 Asensus Surgical i.e., Asensus Surgical and Penumbra go up and down completely randomly.

Pair Corralation between Asensus Surgical and Penumbra

If you would invest  24,048  in Penumbra on February 16, 2025 and sell it today you would earn a total of  4,020  from holding Penumbra or generate 16.72% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Asensus Surgical  vs.  Penumbra

Asensus Surgical

Risk-Adjusted Performance

Very Weak

Over the last 90 days Asensus Surgical has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Asensus Surgical is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Penumbra

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Penumbra are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy technical and fundamental indicators, Penumbra is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Asensus Surgical and Penumbra

The main advantage of trading using opposite Asensus Surgical and Penumbra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asensus Surgical 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.

The idea behind Asensus Surgical and Penumbra 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.

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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.