Correlation Between AtriCure and Sysmex Corp
Can any of the company-specific risk be diversified away by investing in both AtriCure and Sysmex 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 AtriCure and Sysmex Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AtriCure and Sysmex Corp, you can compare the effects of market volatilities on AtriCure and Sysmex 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 AtriCure with a short position of Sysmex Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of AtriCure and Sysmex Corp.
Diversification Opportunities for AtriCure and Sysmex Corp
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between AtriCure and Sysmex is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding AtriCure and Sysmex Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sysmex Corp 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 Sysmex Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sysmex Corp has no effect on the direction of AtriCure i.e., AtriCure and Sysmex Corp go up and down completely randomly.
Pair Corralation between AtriCure and Sysmex Corp
Given the investment horizon of 90 days AtriCure is expected to generate 2.01 times more return on investment than Sysmex Corp. However, AtriCure is 2.01 times more volatile than Sysmex Corp. It trades about 0.12 of its potential returns per unit of risk. Sysmex Corp is currently generating about 0.09 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 Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AtriCure vs. Sysmex Corp
Performance |
| Timeline |
| AtriCure |
| Sysmex Corp |
AtriCure and Sysmex Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AtriCure and Sysmex Corp
The main advantage of trading using opposite AtriCure and Sysmex Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AtriCure position performs unexpectedly, Sysmex 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 Sysmex Corp will offset losses from the drop in Sysmex Corp's long position.| AtriCure vs. Nexgel Inc | AtriCure vs. Avinger | AtriCure vs. Sharps Technology | AtriCure vs. Microbot Medical |
| Sysmex Corp vs. BioLife Sciences | Sysmex Corp vs. GlucoTrack | Sysmex Corp vs. Sharps Technology | Sysmex Corp 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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