Correlation Between Figs and AtriCure
Can any of the company-specific risk be diversified away by investing in both Figs and AtriCure 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 Figs and AtriCure into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Figs Inc and AtriCure, you can compare the effects of market volatilities on Figs and AtriCure 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 Figs with a short position of AtriCure. Check out your portfolio center. Please also check ongoing floating volatility patterns of Figs and AtriCure.
Diversification Opportunities for Figs and AtriCure
Very good diversification
The 3 months correlation between Figs and AtriCure is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Figs Inc and AtriCure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AtriCure and Figs 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 Figs Inc are associated (or correlated) with AtriCure. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AtriCure has no effect on the direction of Figs i.e., Figs and AtriCure go up and down completely randomly.
Pair Corralation between Figs and AtriCure
Given the investment horizon of 90 days Figs Inc is expected to under-perform the AtriCure. In addition to that, Figs is 2.57 times more volatile than AtriCure. It trades about -0.11 of its total potential returns per unit of risk. AtriCure is currently generating about 0.08 per unit of volatility. If you would invest 3,483 in AtriCure on August 31, 2024 and sell it today you would earn a total of 134.00 from holding AtriCure or generate 3.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Figs Inc vs. AtriCure
Performance |
| Timeline |
| Figs Inc |
| AtriCure |
Figs and AtriCure Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Figs and AtriCure
The main advantage of trading using opposite Figs and AtriCure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Figs position performs unexpectedly, AtriCure 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 AtriCure will offset losses from the drop in AtriCure's long position.The idea behind Figs Inc and AtriCure pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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