Correlation Between NanoString Technologies and AtriCure
Can any of the company-specific risk be diversified away by investing in both NanoString Technologies 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 NanoString Technologies and AtriCure into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NanoString Technologies and AtriCure, you can compare the effects of market volatilities on NanoString Technologies 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 NanoString Technologies with a short position of AtriCure. Check out your portfolio center. Please also check ongoing floating volatility patterns of NanoString Technologies and AtriCure.
Diversification Opportunities for NanoString Technologies and AtriCure
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between NanoString and AtriCure is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding NanoString Technologies and AtriCure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AtriCure and NanoString 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 NanoString Technologies 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 NanoString Technologies i.e., NanoString Technologies and AtriCure go up and down completely randomly.
Pair Corralation between NanoString Technologies and AtriCure
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 | Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
NanoString Technologies vs. AtriCure
Performance |
| Timeline |
| NanoString Technologies |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| AtriCure |
NanoString Technologies and AtriCure Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NanoString Technologies and AtriCure
The main advantage of trading using opposite NanoString Technologies and AtriCure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NanoString Technologies 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.| NanoString Technologies vs. Veracyte | NanoString Technologies vs. Syros Pharmaceuticals | NanoString Technologies vs. Seres Therapeutics | NanoString Technologies vs. Iovance Biotherapeutics |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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