Correlation Between Hyperfine and EDAP TMS

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

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

Diversification Opportunities for Hyperfine and EDAP TMS

0.0

Correlation Coefficient

Hyperfine  EDAP TMS

Pay attention - limited upside

The 3 months correlation between Hyperfine and EDAP is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Hyperfine and EDAP TMS SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EDAP TMS SA and Hyperfine 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 Hyperfine are associated (or correlated) with EDAP TMS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EDAP TMS SA has no effect on the direction of Hyperfine i.e., Hyperfine and EDAP TMS go up and down completely randomly.

Pair Corralation between Hyperfine and EDAP TMS

If you would invest  126.00  in Hyperfine on August 26, 2025 and sell it today you would lose (15.00) from holding Hyperfine or give up 11.9% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.56%
Values	Daily Returns

Hyperfine  vs.  EDAP TMS SA

Hyperfine

Risk-Adjusted Performance

Weakest

Over the last 90 days Hyperfine has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Hyperfine is not utilizing all of its potentials. The recent stock price agitation, may contribute to short-term losses for the retail investors.

EDAP TMS SA

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in EDAP TMS SA are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, EDAP TMS reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Hyperfine and EDAP TMS

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

The idea behind Hyperfine and EDAP TMS SA 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.