Correlation Between ViewRay and Acutus Medical
Can any of the company-specific risk be diversified away by investing in both ViewRay and Acutus 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 ViewRay and Acutus Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ViewRay and Acutus Medical, you can compare the effects of market volatilities on ViewRay and Acutus 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 ViewRay with a short position of Acutus Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of ViewRay and Acutus Medical.
Diversification Opportunities for ViewRay and Acutus Medical
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between ViewRay and Acutus is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding ViewRay and Acutus Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acutus Medical and ViewRay 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 ViewRay are associated (or correlated) with Acutus Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acutus Medical has no effect on the direction of ViewRay i.e., ViewRay and Acutus Medical go up and down completely randomly.
Pair Corralation between ViewRay and Acutus Medical
Given the investment horizon of 90 days ViewRay is expected to under-perform the Acutus Medical. In addition to that, ViewRay is 1.51 times more volatile than Acutus Medical. It trades about -0.23 of its total potential returns per unit of risk. Acutus Medical is currently generating about 0.02 per unit of volatility. If you would invest 82.00 in Acutus Medical on September 3, 2024 and sell it today you would lose (9.00) from holding Acutus Medical or give up 10.98% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ViewRay vs. Acutus Medical
Performance |
| Timeline |
| ViewRay |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Acutus Medical |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
ViewRay and Acutus Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ViewRay and Acutus Medical
The main advantage of trading using opposite ViewRay and Acutus Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ViewRay position performs unexpectedly, Acutus 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 Acutus Medical will offset losses from the drop in Acutus Medical's long position.The idea behind ViewRay and Acutus Medical pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Acutus Medical vs. STRATA Skin Sciences | Acutus Medical vs. Axogen Inc | Acutus Medical vs. Ainos Inc | Acutus Medical vs. LENSAR Inc |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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