Correlation Between Acutus Medical and Delcath Systems
Can any of the company-specific risk be diversified away by investing in both Acutus Medical and Delcath Systems 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 Acutus Medical and Delcath Systems into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Acutus Medical and Delcath Systems, you can compare the effects of market volatilities on Acutus Medical and Delcath Systems 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 Acutus Medical with a short position of Delcath Systems. Check out your portfolio center. Please also check ongoing floating volatility patterns of Acutus Medical and Delcath Systems.
Diversification Opportunities for Acutus Medical and Delcath Systems
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Acutus and Delcath is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Acutus Medical and Delcath Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Delcath Systems and Acutus 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 Acutus Medical are associated (or correlated) with Delcath Systems. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Delcath Systems has no effect on the direction of Acutus Medical i.e., Acutus Medical and Delcath Systems go up and down completely randomly.
Pair Corralation between Acutus Medical and Delcath Systems
Given the investment horizon of 90 days Acutus Medical is expected to under-perform the Delcath Systems. But the stock apears to be less risky and, when comparing its historical volatility, Acutus Medical is 1.87 times less risky than Delcath Systems. The stock trades about -0.36 of its potential returns per unit of risk. The Delcath Systems is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 565.00 in Delcath Systems on August 28, 2024 and sell it today you would earn a total of 485.00 from holding Delcath Systems or generate 85.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 4.24% |
| Values | Daily Returns |
Acutus Medical vs. Delcath Systems
Performance |
| Timeline |
| Acutus Medical |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Delcath Systems |
Acutus Medical and Delcath Systems Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Acutus Medical and Delcath Systems
The main advantage of trading using opposite Acutus Medical and Delcath Systems positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Acutus Medical position performs unexpectedly, Delcath Systems 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 Delcath Systems will offset losses from the drop in Delcath Systems' long position.| Acutus Medical vs. STRATA Skin Sciences | Acutus Medical vs. Axogen Inc | Acutus Medical vs. Ainos Inc | Acutus Medical vs. LENSAR Inc |
| Delcath Systems vs. Neuropace | Delcath Systems vs. SurModics | Delcath Systems vs. CVRx Inc | Delcath Systems vs. LivaNova PLC |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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