Correlation Between Milestone Scientific and AtriCure
Can any of the company-specific risk be diversified away by investing in both Milestone Scientific and AtriCure 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 Milestone Scientific and AtriCure into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Milestone Scientific and AtriCure, you can compare the effects of market volatilities on Milestone Scientific and AtriCure 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 Milestone Scientific with a short position of AtriCure. Check out your portfolio center. Please also check ongoing floating volatility patterns of Milestone Scientific and AtriCure.
Diversification Opportunities for Milestone Scientific and AtriCure
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Milestone and AtriCure is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding Milestone Scientific and AtriCure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AtriCure and Milestone Scientific 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 Milestone Scientific are associated (or correlated) with AtriCure. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AtriCure has no effect on the direction of Milestone Scientific i.e., Milestone Scientific and AtriCure go up and down completely randomly.
Pair Corralation between Milestone Scientific and AtriCure
Given the investment horizon of 90 days Milestone Scientific is expected to generate 6.82 times less return on investment than AtriCure. In addition to that, Milestone Scientific is 1.01 times more volatile than AtriCure. It trades about 0.04 of its total potential returns per unit of risk. AtriCure is currently generating about 0.25 per unit of volatility. If you would invest 2,875 in AtriCure on August 28, 2024 and sell it today you would earn a total of 726.00 from holding AtriCure or generate 25.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Milestone Scientific vs. AtriCure
Performance |
| Timeline |
| Milestone Scientific |
| AtriCure |
Milestone Scientific and AtriCure Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Milestone Scientific and AtriCure
The main advantage of trading using opposite Milestone Scientific and AtriCure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Milestone Scientific position performs unexpectedly, AtriCure 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 AtriCure will offset losses from the drop in AtriCure's long position.| Milestone Scientific vs. InfuSystems Holdings | Milestone Scientific vs. STRATA Skin Sciences | Milestone Scientific vs. Retractable Technologies | Milestone Scientific vs. OncoCyte 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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