Correlation Between Alphatec Holdings and Pulmonx Corp
Can any of the company-specific risk be diversified away by investing in both Alphatec Holdings and Pulmonx Corp 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 Alphatec Holdings and Pulmonx Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alphatec Holdings and Pulmonx Corp, you can compare the effects of market volatilities on Alphatec Holdings and Pulmonx Corp 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 Alphatec Holdings with a short position of Pulmonx Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alphatec Holdings and Pulmonx Corp.
Diversification Opportunities for Alphatec Holdings and Pulmonx Corp
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Alphatec and Pulmonx is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Alphatec Holdings and Pulmonx Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pulmonx Corp and Alphatec Holdings 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 Alphatec Holdings are associated (or correlated) with Pulmonx Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pulmonx Corp has no effect on the direction of Alphatec Holdings i.e., Alphatec Holdings and Pulmonx Corp go up and down completely randomly.
Pair Corralation between Alphatec Holdings and Pulmonx Corp
Given the investment horizon of 90 days Alphatec Holdings is expected to generate 1.72 times more return on investment than Pulmonx Corp. However, Alphatec Holdings is 1.72 times more volatile than Pulmonx Corp. It trades about 0.35 of its potential returns per unit of risk. Pulmonx Corp is currently generating about 0.08 per unit of risk. If you would invest 527.00 in Alphatec Holdings on August 28, 2024 and sell it today you would earn a total of 435.00 from holding Alphatec Holdings or generate 82.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Alphatec Holdings vs. Pulmonx Corp
Performance |
| Timeline |
| Alphatec Holdings |
| Pulmonx Corp |
Alphatec Holdings and Pulmonx Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alphatec Holdings and Pulmonx Corp
The main advantage of trading using opposite Alphatec Holdings and Pulmonx Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alphatec Holdings position performs unexpectedly, Pulmonx Corp 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 Pulmonx Corp will offset losses from the drop in Pulmonx Corp's long position.| Alphatec Holdings vs. Globus Medical | Alphatec Holdings vs. Orthofix Medical | Alphatec Holdings vs. CONMED | Alphatec Holdings vs. LivaNova PLC |
| Pulmonx Corp vs. Iradimed Co | Pulmonx Corp vs. Orthofix Medical | Pulmonx Corp vs. Neuropace | Pulmonx Corp vs. Integer Holdings Corp |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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