Correlation Between Hologic and AtriCure
Can any of the company-specific risk be diversified away by investing in both Hologic 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 Hologic and AtriCure into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hologic and AtriCure, you can compare the effects of market volatilities on Hologic 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 Hologic with a short position of AtriCure. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hologic and AtriCure.
Diversification Opportunities for Hologic and AtriCure
Very good diversification
The 3 months correlation between Hologic and AtriCure is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Hologic and AtriCure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AtriCure and Hologic 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 Hologic 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 Hologic i.e., Hologic and AtriCure go up and down completely randomly.
Pair Corralation between Hologic and AtriCure
Given the investment horizon of 90 days Hologic is expected to under-perform the AtriCure. But the stock apears to be less risky and, when comparing its historical volatility, Hologic is 2.8 times less risky than AtriCure. The stock trades about -0.02 of its potential returns per unit of risk. The AtriCure is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 2,875 in AtriCure on August 28, 2024 and sell it today you would earn a total of 726.00 from holding AtriCure or generate 25.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hologic vs. AtriCure
Performance |
| Timeline |
| Hologic |
| AtriCure |
Hologic and AtriCure Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hologic and AtriCure
The main advantage of trading using opposite Hologic and AtriCure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hologic 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.| Hologic vs. Haemonetics | Hologic vs. ICU Medical | Hologic vs. Envista Holdings Corp | Hologic vs. The Cooper Companies, |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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