Correlation Between Forian and Accuray Incorporated
Can any of the company-specific risk be diversified away by investing in both Forian and Accuray Incorporated 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 Forian and Accuray Incorporated into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Forian Inc and Accuray Incorporated, you can compare the effects of market volatilities on Forian and Accuray Incorporated 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 Forian with a short position of Accuray Incorporated. Check out your portfolio center. Please also check ongoing floating volatility patterns of Forian and Accuray Incorporated.
Diversification Opportunities for Forian and Accuray Incorporated
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Forian and Accuray is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Forian Inc and Accuray Incorporated in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Accuray Incorporated and Forian 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 Forian Inc are associated (or correlated) with Accuray Incorporated. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Accuray Incorporated has no effect on the direction of Forian i.e., Forian and Accuray Incorporated go up and down completely randomly.
Pair Corralation between Forian and Accuray Incorporated
Given the investment horizon of 90 days Forian Inc is expected to under-perform the Accuray Incorporated. But the stock apears to be less risky and, when comparing its historical volatility, Forian Inc is 1.1 times less risky than Accuray Incorporated. The stock trades about -0.01 of its potential returns per unit of risk. The Accuray Incorporated is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 294.00 in Accuray Incorporated on August 24, 2024 and sell it today you would lose (101.00) from holding Accuray Incorporated or give up 34.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Forian Inc vs. Accuray Incorporated
Performance |
| Timeline |
| Forian Inc |
| Accuray Incorporated |
Forian and Accuray Incorporated Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Forian and Accuray Incorporated
The main advantage of trading using opposite Forian and Accuray Incorporated positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Forian position performs unexpectedly, Accuray Incorporated 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 Accuray Incorporated will offset losses from the drop in Accuray Incorporated's long position.| Forian vs. HealthStream | Forian vs. National Research Corp | Forian vs. HealthEquity | Forian vs. Health Catalyst |
| Accuray Incorporated vs. SurModics | Accuray Incorporated vs. Axogen Inc | Accuray Incorporated vs. Bioventus | Accuray Incorporated vs. Cutera 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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Stocks Directory Find actively traded stocks across global markets | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |