Correlation Between Akoya Biosciences and ICU Medical
Can any of the company-specific risk be diversified away by investing in both Akoya Biosciences and ICU 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 Akoya Biosciences and ICU Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Akoya Biosciences and ICU Medical, you can compare the effects of market volatilities on Akoya Biosciences and ICU 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 Akoya Biosciences with a short position of ICU Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Akoya Biosciences and ICU Medical.
Diversification Opportunities for Akoya Biosciences and ICU Medical
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Akoya and ICU is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Akoya Biosciences and ICU Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ICU Medical and Akoya Biosciences 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 Akoya Biosciences are associated (or correlated) with ICU Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ICU Medical has no effect on the direction of Akoya Biosciences i.e., Akoya Biosciences and ICU Medical go up and down completely randomly.
Pair Corralation between Akoya Biosciences and ICU Medical
Given the investment horizon of 90 days Akoya Biosciences is expected to under-perform the ICU Medical. In addition to that, Akoya Biosciences is 1.95 times more volatile than ICU Medical. It trades about -0.02 of its total potential returns per unit of risk. ICU Medical is currently generating about 0.11 per unit of volatility. If you would invest 8,462 in ICU Medical on August 24, 2024 and sell it today you would earn a total of 8,422 from holding ICU Medical or generate 99.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Akoya Biosciences vs. ICU Medical
Performance |
| Timeline |
| Akoya Biosciences |
| ICU Medical |
Akoya Biosciences and ICU Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Akoya Biosciences and ICU Medical
The main advantage of trading using opposite Akoya Biosciences and ICU Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Akoya Biosciences position performs unexpectedly, ICU 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 ICU Medical will offset losses from the drop in ICU Medical's long position.| Akoya Biosciences vs. AtriCure | Akoya Biosciences vs. ICU Medical | Akoya Biosciences vs. Haemonetics | Akoya Biosciences vs. AngioDynamics |
| ICU Medical vs. Merit Medical Systems | ICU Medical vs. The Cooper Companies, | ICU Medical vs. AngioDynamics | ICU Medical vs. AptarGroup |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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