Correlation Between ICU Medical and Avinger
Can any of the company-specific risk be diversified away by investing in both ICU Medical and Avinger 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 Avinger into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ICU Medical and Avinger, you can compare the effects of market volatilities on ICU Medical and Avinger 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 Avinger. Check out your portfolio center. Please also check ongoing floating volatility patterns of ICU Medical and Avinger.
Diversification Opportunities for ICU Medical and Avinger
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ICU and Avinger is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding ICU Medical and Avinger in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Avinger 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 Avinger. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Avinger has no effect on the direction of ICU Medical i.e., ICU Medical and Avinger go up and down completely randomly.
Pair Corralation between ICU Medical and Avinger
Given the investment horizon of 90 days ICU Medical is expected to under-perform the Avinger. But the stock apears to be less risky and, when comparing its historical volatility, ICU Medical is 2.36 times less risky than Avinger. The stock trades about -0.11 of its potential returns per unit of risk. The Avinger is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 82.00 in Avinger on August 28, 2024 and sell it today you would lose (2.00) from holding Avinger or give up 2.44% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ICU Medical vs. Avinger
Performance |
| Timeline |
| ICU Medical |
| Avinger |
ICU Medical and Avinger Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ICU Medical and Avinger
The main advantage of trading using opposite ICU Medical and Avinger positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ICU Medical position performs unexpectedly, Avinger 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 Avinger will offset losses from the drop in Avinger's long position.| ICU Medical vs. Merit Medical Systems | ICU Medical vs. The Cooper Companies, | ICU Medical vs. AngioDynamics | ICU Medical vs. AptarGroup |
| Avinger vs. GlucoTrack | Avinger vs. Nexgel Inc | Avinger vs. Sharps Technology | Avinger vs. Innovative Eyewear |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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