Correlation Between Electromed and Acutus Medical
Can any of the company-specific risk be diversified away by investing in both Electromed and Acutus Medical 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 Electromed and Acutus Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Electromed and Acutus Medical, you can compare the effects of market volatilities on Electromed and Acutus Medical 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 Electromed with a short position of Acutus Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Electromed and Acutus Medical.
Diversification Opportunities for Electromed and Acutus Medical
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Electromed and Acutus is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Electromed and Acutus Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acutus Medical and Electromed 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 Electromed are associated (or correlated) with Acutus Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acutus Medical has no effect on the direction of Electromed i.e., Electromed and Acutus Medical go up and down completely randomly.
Pair Corralation between Electromed and Acutus Medical
If you would invest 1,725 in Electromed on September 3, 2024 and sell it today you would earn a total of 1,353 from holding Electromed or generate 78.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 1.56% |
| Values | Daily Returns |
Electromed vs. Acutus Medical
Performance |
| Timeline |
| Electromed |
| Acutus Medical |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Electromed and Acutus Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Electromed and Acutus Medical
The main advantage of trading using opposite Electromed and Acutus Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Electromed position performs unexpectedly, Acutus Medical 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 Acutus Medical will offset losses from the drop in Acutus Medical's long position.| Electromed vs. Tandem Diabetes Care | Electromed vs. Inspire Medical Systems | Electromed vs. Penumbra | Electromed vs. Insulet |
| Acutus Medical vs. STRATA Skin Sciences | Acutus Medical vs. Axogen Inc | Acutus Medical vs. Ainos Inc | Acutus Medical vs. LENSAR Inc |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |