Correlation Between ICU Medical and Akoya Biosciences
Can any of the company-specific risk be diversified away by investing in both ICU Medical and Akoya Biosciences 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 ICU Medical and Akoya Biosciences into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ICU Medical and Akoya Biosciences, you can compare the effects of market volatilities on ICU Medical and Akoya Biosciences 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 ICU Medical with a short position of Akoya Biosciences. Check out your portfolio center. Please also check ongoing floating volatility patterns of ICU Medical and Akoya Biosciences.
Diversification Opportunities for ICU Medical and Akoya Biosciences
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ICU and Akoya is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding ICU Medical and Akoya Biosciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Akoya Biosciences and ICU 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 ICU Medical are associated (or correlated) with Akoya Biosciences. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Akoya Biosciences has no effect on the direction of ICU Medical i.e., ICU Medical and Akoya Biosciences go up and down completely randomly.
Pair Corralation between ICU Medical and Akoya Biosciences
Given the investment horizon of 90 days ICU Medical is expected to generate 0.18 times more return on investment than Akoya Biosciences. However, ICU Medical is 5.43 times less risky than Akoya Biosciences. It trades about -0.16 of its potential returns per unit of risk. Akoya Biosciences is currently generating about -0.13 per unit of risk. If you would invest 17,770 in ICU Medical on August 24, 2024 and sell it today you would lose (886.00) from holding ICU Medical or give up 4.99% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ICU Medical vs. Akoya Biosciences
Performance |
| Timeline |
| ICU Medical |
| Akoya Biosciences |
ICU Medical and Akoya Biosciences Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ICU Medical and Akoya Biosciences
The main advantage of trading using opposite ICU Medical and Akoya Biosciences positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ICU Medical position performs unexpectedly, Akoya Biosciences 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 Akoya Biosciences will offset losses from the drop in Akoya Biosciences' long position.| ICU Medical vs. Merit Medical Systems | ICU Medical vs. The Cooper Companies, | ICU Medical vs. AngioDynamics | ICU Medical vs. AptarGroup |
| Akoya Biosciences vs. AtriCure | Akoya Biosciences vs. ICU Medical | Akoya Biosciences vs. Haemonetics | Akoya Biosciences vs. AngioDynamics |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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