Correlation Between AtriCure and Coloplast
Can any of the company-specific risk be diversified away by investing in both AtriCure and Coloplast 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 AtriCure and Coloplast into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AtriCure and Coloplast A, you can compare the effects of market volatilities on AtriCure and Coloplast 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 AtriCure with a short position of Coloplast. Check out your portfolio center. Please also check ongoing floating volatility patterns of AtriCure and Coloplast.
Diversification Opportunities for AtriCure and Coloplast
Excellent diversification
The 3 months correlation between AtriCure and Coloplast is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding AtriCure and Coloplast A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coloplast A and AtriCure 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 AtriCure are associated (or correlated) with Coloplast. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coloplast A has no effect on the direction of AtriCure i.e., AtriCure and Coloplast go up and down completely randomly.
Pair Corralation between AtriCure and Coloplast
Given the investment horizon of 90 days AtriCure is expected to generate 2.42 times more return on investment than Coloplast. However, AtriCure is 2.42 times more volatile than Coloplast A. It trades about 0.12 of its potential returns per unit of risk. Coloplast A is currently generating about 0.01 per unit of risk. If you would invest 2,267 in AtriCure on August 24, 2024 and sell it today you would earn a total of 1,301 from holding AtriCure or generate 57.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AtriCure vs. Coloplast A
Performance |
| Timeline |
| AtriCure |
| Coloplast A |
AtriCure and Coloplast Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AtriCure and Coloplast
The main advantage of trading using opposite AtriCure and Coloplast positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AtriCure position performs unexpectedly, Coloplast 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 Coloplast will offset losses from the drop in Coloplast's long position.| AtriCure vs. Nexgel Inc | AtriCure vs. Avinger | AtriCure vs. Sharps Technology | AtriCure vs. Microbot Medical |
| Coloplast vs. BioLife Sciences | Coloplast vs. GlucoTrack | Coloplast vs. Sharps Technology | Coloplast vs. Wearable Health Solutions |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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