Correlation Between Delcath Systems and Alphatec Holdings
Can any of the company-specific risk be diversified away by investing in both Delcath Systems and Alphatec Holdings 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 Delcath Systems and Alphatec Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Delcath Systems and Alphatec Holdings, you can compare the effects of market volatilities on Delcath Systems and Alphatec Holdings 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 Delcath Systems with a short position of Alphatec Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Delcath Systems and Alphatec Holdings.
Diversification Opportunities for Delcath Systems and Alphatec Holdings
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Delcath and Alphatec is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Delcath Systems and Alphatec Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alphatec Holdings and Delcath Systems 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 Delcath Systems are associated (or correlated) with Alphatec Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alphatec Holdings has no effect on the direction of Delcath Systems i.e., Delcath Systems and Alphatec Holdings go up and down completely randomly.
Pair Corralation between Delcath Systems and Alphatec Holdings
Given the investment horizon of 90 days Delcath Systems is expected to generate 1.39 times more return on investment than Alphatec Holdings. However, Delcath Systems is 1.39 times more volatile than Alphatec Holdings. It trades about 0.05 of its potential returns per unit of risk. Alphatec Holdings is currently generating about -0.02 per unit of risk. If you would invest 565.00 in Delcath Systems on August 28, 2024 and sell it today you would earn a total of 485.00 from holding Delcath Systems or generate 85.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Delcath Systems vs. Alphatec Holdings
Performance |
| Timeline |
| Delcath Systems |
| Alphatec Holdings |
Delcath Systems and Alphatec Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Delcath Systems and Alphatec Holdings
The main advantage of trading using opposite Delcath Systems and Alphatec Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Delcath Systems position performs unexpectedly, Alphatec Holdings 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 Alphatec Holdings will offset losses from the drop in Alphatec Holdings' long position.| Delcath Systems vs. Neuropace | Delcath Systems vs. SurModics | Delcath Systems vs. CVRx Inc | Delcath Systems vs. LivaNova PLC |
| Alphatec Holdings vs. Nutex Health | Alphatec Holdings vs. Mangoceuticals, Common Stock | Alphatec Holdings vs. Aclarion |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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