Correlation Between Varex Imaging and Arcturus Therapeutics
Can any of the company-specific risk be diversified away by investing in both Varex Imaging and Arcturus Therapeutics 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 Arcturus Therapeutics 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 Arcturus Therapeutics Holdings, you can compare the effects of market volatilities on Varex Imaging and Arcturus Therapeutics 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 Arcturus Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Varex Imaging and Arcturus Therapeutics.
Diversification Opportunities for Varex Imaging and Arcturus Therapeutics
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Varex and Arcturus is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Varex Imaging Corp and Arcturus Therapeutics Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Arcturus Therapeutics 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 Arcturus Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Arcturus Therapeutics has no effect on the direction of Varex Imaging i.e., Varex Imaging and Arcturus Therapeutics go up and down completely randomly.
Pair Corralation between Varex Imaging and Arcturus Therapeutics
Given the investment horizon of 90 days Varex Imaging Corp is expected to under-perform the Arcturus Therapeutics. In addition to that, Varex Imaging is 1.08 times more volatile than Arcturus Therapeutics Holdings. It trades about -0.01 of its total potential returns per unit of risk. Arcturus Therapeutics Holdings is currently generating about 0.03 per unit of volatility. If you would invest 1,649 in Arcturus Therapeutics Holdings on November 28, 2024 and sell it today you would earn a total of 7.00 from holding Arcturus Therapeutics Holdings or generate 0.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Varex Imaging Corp vs. Arcturus Therapeutics Holdings
Performance |
| Timeline |
| Varex Imaging Corp |
| Arcturus Therapeutics |
Varex Imaging and Arcturus Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Varex Imaging and Arcturus Therapeutics
The main advantage of trading using opposite Varex Imaging and Arcturus Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Varex Imaging position performs unexpectedly, Arcturus Therapeutics 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 Arcturus Therapeutics will offset losses from the drop in Arcturus Therapeutics' long position.| Varex Imaging vs. Sight Sciences | Varex Imaging vs. Apyx Medical | Varex Imaging vs. Si Bone | Varex Imaging vs. Iradimed Co |
| Arcturus Therapeutics vs. 89bio Inc | Arcturus Therapeutics vs. Madrigal Pharmaceuticals | Arcturus Therapeutics vs. Pliant Therapeutics | Arcturus Therapeutics vs. Arcellx |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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