Correlation Between Acutus Medical and Orthofix Medical
Can any of the company-specific risk be diversified away by investing in both Acutus Medical and Orthofix 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 Acutus Medical and Orthofix Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Acutus Medical and Orthofix Medical, you can compare the effects of market volatilities on Acutus Medical and Orthofix 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 Acutus Medical with a short position of Orthofix Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Acutus Medical and Orthofix Medical.
Diversification Opportunities for Acutus Medical and Orthofix Medical
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Acutus and Orthofix is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Acutus Medical and Orthofix Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Orthofix Medical 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 Orthofix Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Orthofix Medical has no effect on the direction of Acutus Medical i.e., Acutus Medical and Orthofix Medical go up and down completely randomly.
Pair Corralation between Acutus Medical and Orthofix Medical
Given the investment horizon of 90 days Acutus Medical is expected to under-perform the Orthofix Medical. But the stock apears to be less risky and, when comparing its historical volatility, Acutus Medical is 1.03 times less risky than Orthofix Medical. The stock trades about -0.36 of its potential returns per unit of risk. The Orthofix Medical is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 1,751 in Orthofix Medical on August 28, 2024 and sell it today you would earn a total of 153.00 from holding Orthofix Medical or generate 8.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.24% |
| Values | Daily Returns |
Acutus Medical vs. Orthofix Medical
Performance |
| Timeline |
| Acutus Medical |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Orthofix Medical |
Acutus Medical and Orthofix Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Acutus Medical and Orthofix Medical
The main advantage of trading using opposite Acutus Medical and Orthofix Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Acutus Medical position performs unexpectedly, Orthofix 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 Orthofix Medical will offset losses from the drop in Orthofix Medical's long position.| Acutus Medical vs. STRATA Skin Sciences | Acutus Medical vs. Axogen Inc | Acutus Medical vs. Ainos Inc | Acutus Medical vs. LENSAR Inc |
| Orthofix Medical vs. Globus Medical | Orthofix Medical vs. CONMED | Orthofix Medical vs. Alphatec Holdings | Orthofix Medical 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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