Correlation Between Accuray Incorporated and AngioDynamics
Can any of the company-specific risk be diversified away by investing in both Accuray Incorporated and AngioDynamics 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 Accuray Incorporated and AngioDynamics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Accuray Incorporated and AngioDynamics, you can compare the effects of market volatilities on Accuray Incorporated and AngioDynamics 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 Accuray Incorporated with a short position of AngioDynamics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Accuray Incorporated and AngioDynamics.
Diversification Opportunities for Accuray Incorporated and AngioDynamics
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Accuray and AngioDynamics is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Accuray Incorporated and AngioDynamics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AngioDynamics and Accuray Incorporated 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 Accuray Incorporated are associated (or correlated) with AngioDynamics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AngioDynamics has no effect on the direction of Accuray Incorporated i.e., Accuray Incorporated and AngioDynamics go up and down completely randomly.
Pair Corralation between Accuray Incorporated and AngioDynamics
Given the investment horizon of 90 days Accuray Incorporated is expected to generate 1.52 times more return on investment than AngioDynamics. However, Accuray Incorporated is 1.52 times more volatile than AngioDynamics. It trades about 0.01 of its potential returns per unit of risk. AngioDynamics is currently generating about 0.02 per unit of risk. If you would invest 265.00 in Accuray Incorporated on September 2, 2024 and sell it today you would lose (42.00) from holding Accuray Incorporated or give up 15.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Accuray Incorporated vs. AngioDynamics
Performance |
| Timeline |
| Accuray Incorporated |
| AngioDynamics |
Accuray Incorporated and AngioDynamics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Accuray Incorporated and AngioDynamics
The main advantage of trading using opposite Accuray Incorporated and AngioDynamics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Accuray Incorporated position performs unexpectedly, AngioDynamics 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 AngioDynamics will offset losses from the drop in AngioDynamics' long position.| Accuray Incorporated vs. SurModics | Accuray Incorporated vs. Axogen Inc | Accuray Incorporated vs. Bioventus | Accuray Incorporated vs. Cutera Inc |
| AngioDynamics vs. AptarGroup | AngioDynamics vs. Repro Med Systems | AngioDynamics vs. AtriCure | AngioDynamics vs. Akoya Biosciences |
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 CEOs Directory module to screen CEOs from public companies around the world.
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