Correlation Between Varex Imaging and Apyx Medical
Can any of the company-specific risk be diversified away by investing in both Varex Imaging 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 Varex Imaging and Apyx Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Varex Imaging Corp and Apyx Medical, you can compare the effects of market volatilities on Varex Imaging 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 Varex Imaging with a short position of Apyx Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Varex Imaging and Apyx Medical.
Diversification Opportunities for Varex Imaging and Apyx Medical
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Varex and Apyx is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Varex Imaging Corp and Apyx Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apyx Medical and Varex Imaging 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 Varex Imaging Corp 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 Varex Imaging i.e., Varex Imaging and Apyx Medical go up and down completely randomly.
Pair Corralation between Varex Imaging and Apyx Medical
Given the investment horizon of 90 days Varex Imaging Corp is expected to under-perform the Apyx Medical. But the stock apears to be less risky and, when comparing its historical volatility, Varex Imaging Corp is 3.68 times less risky than Apyx Medical. The stock trades about -0.31 of its potential returns per unit of risk. The Apyx Medical is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 145.00 in Apyx Medical on October 23, 2024 and sell it today you would lose (6.00) from holding Apyx Medical or give up 4.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Varex Imaging Corp vs. Apyx Medical
Performance |
| Timeline |
| Varex Imaging Corp |
| Apyx Medical |
Varex Imaging and Apyx Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Varex Imaging and Apyx Medical
The main advantage of trading using opposite Varex Imaging and Apyx Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Varex Imaging 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.| Varex Imaging vs. Sight Sciences | Varex Imaging vs. Apyx Medical | Varex Imaging vs. Si Bone | Varex Imaging vs. Iradimed Co |
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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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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