Correlation Between InfuSystems Holdings and Akoya Biosciences
Can any of the company-specific risk be diversified away by investing in both InfuSystems Holdings 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 InfuSystems Holdings and Akoya Biosciences into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between InfuSystems Holdings and Akoya Biosciences, you can compare the effects of market volatilities on InfuSystems Holdings 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 InfuSystems Holdings with a short position of Akoya Biosciences. Check out your portfolio center. Please also check ongoing floating volatility patterns of InfuSystems Holdings and Akoya Biosciences.
Diversification Opportunities for InfuSystems Holdings and Akoya Biosciences
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between InfuSystems and Akoya is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding InfuSystems Holdings and Akoya Biosciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Akoya Biosciences and InfuSystems Holdings 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 InfuSystems Holdings 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 InfuSystems Holdings i.e., InfuSystems Holdings and Akoya Biosciences go up and down completely randomly.
Pair Corralation between InfuSystems Holdings and Akoya Biosciences
Given the investment horizon of 90 days InfuSystems Holdings is expected to generate 0.68 times more return on investment than Akoya Biosciences. However, InfuSystems Holdings is 1.47 times less risky than Akoya Biosciences. It trades about 0.33 of its potential returns per unit of risk. Akoya Biosciences is currently generating about -0.14 per unit of risk. If you would invest 632.00 in InfuSystems Holdings on August 30, 2024 and sell it today you would earn a total of 254.00 from holding InfuSystems Holdings or generate 40.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
InfuSystems Holdings vs. Akoya Biosciences
Performance |
| Timeline |
| InfuSystems Holdings |
| Akoya Biosciences |
InfuSystems Holdings and Akoya Biosciences Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with InfuSystems Holdings and Akoya Biosciences
The main advantage of trading using opposite InfuSystems Holdings and Akoya Biosciences positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if InfuSystems Holdings 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.| InfuSystems Holdings vs. Electromed | InfuSystems Holdings vs. Issuer Direct Corp | InfuSystems Holdings vs. IRIDEX | InfuSystems Holdings vs. Milestone Scientific |
| 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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