Correlation Between Icecure Medical and Aurora Spine
Can any of the company-specific risk be diversified away by investing in both Icecure Medical and Aurora Spine 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 Icecure Medical and Aurora Spine into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Icecure Medical and Aurora Spine, you can compare the effects of market volatilities on Icecure Medical and Aurora Spine 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 Icecure Medical with a short position of Aurora Spine. Check out your portfolio center. Please also check ongoing floating volatility patterns of Icecure Medical and Aurora Spine.
Diversification Opportunities for Icecure Medical and Aurora Spine
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Icecure and Aurora is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Icecure Medical and Aurora Spine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aurora Spine and Icecure Medical 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 Icecure Medical are associated (or correlated) with Aurora Spine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aurora Spine has no effect on the direction of Icecure Medical i.e., Icecure Medical and Aurora Spine go up and down completely randomly.
Pair Corralation between Icecure Medical and Aurora Spine
Given the investment horizon of 90 days Icecure Medical is expected to generate 2.05 times more return on investment than Aurora Spine. However, Icecure Medical is 2.05 times more volatile than Aurora Spine. It trades about 0.03 of its potential returns per unit of risk. Aurora Spine is currently generating about 0.02 per unit of risk. If you would invest 100.00 in Icecure Medical on August 30, 2024 and sell it today you would lose (16.78) from holding Icecure Medical or give up 16.78% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Icecure Medical vs. Aurora Spine
Performance |
| Timeline |
| Icecure Medical |
| Aurora Spine |
Icecure Medical and Aurora Spine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Icecure Medical and Aurora Spine
The main advantage of trading using opposite Icecure Medical and Aurora Spine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Icecure Medical position performs unexpectedly, Aurora Spine 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 Aurora Spine will offset losses from the drop in Aurora Spine's long position.| Icecure Medical vs. BrainsWay | Icecure Medical vs. SurModics | Icecure Medical vs. STRATA Skin Sciences | Icecure Medical vs. Tenon Medical |
| Aurora Spine vs. Brainsway | Aurora Spine vs. Bluejay Diagnostics | Aurora Spine vs. Venus Concept | Aurora Spine vs. Icecure Medical |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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