Correlation Between IRhythm Technologies and Apyx Medical
Can any of the company-specific risk be diversified away by investing in both IRhythm Technologies and Apyx Medical 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 IRhythm Technologies and Apyx Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iRhythm Technologies and Apyx Medical, you can compare the effects of market volatilities on IRhythm Technologies and Apyx Medical 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 IRhythm Technologies with a short position of Apyx Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of IRhythm Technologies and Apyx Medical.
Diversification Opportunities for IRhythm Technologies and Apyx Medical
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between IRhythm and Apyx is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding iRhythm Technologies and Apyx Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apyx Medical and IRhythm Technologies 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 iRhythm Technologies are associated (or correlated) with Apyx Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apyx Medical has no effect on the direction of IRhythm Technologies i.e., IRhythm Technologies and Apyx Medical go up and down completely randomly.
Pair Corralation between IRhythm Technologies and Apyx Medical
Given the investment horizon of 90 days iRhythm Technologies is expected to generate 0.63 times more return on investment than Apyx Medical. However, iRhythm Technologies is 1.58 times less risky than Apyx Medical. It trades about 0.01 of its potential returns per unit of risk. Apyx Medical is currently generating about -0.01 per unit of risk. If you would invest 11,989 in iRhythm Technologies on November 3, 2024 and sell it today you would lose (1,104) from holding iRhythm Technologies or give up 9.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
iRhythm Technologies vs. Apyx Medical
Performance |
| Timeline |
| iRhythm Technologies |
| Apyx Medical |
IRhythm Technologies and Apyx Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IRhythm Technologies and Apyx Medical
The main advantage of trading using opposite IRhythm Technologies and Apyx Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IRhythm Technologies position performs unexpectedly, Apyx Medical 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 Apyx Medical will offset losses from the drop in Apyx Medical's long position.| IRhythm Technologies vs. Integer Holdings Corp | IRhythm Technologies vs. CONMED | IRhythm Technologies vs. LivaNova PLC | IRhythm Technologies vs. Orthopediatrics Corp |
| Apyx Medical vs. Neuropace | Apyx Medical vs. Inogen Inc | Apyx Medical vs. SurModics | Apyx Medical vs. Pulmonx Corp |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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