Correlation Between Varex Imaging and ATI Physical
Can any of the company-specific risk be diversified away by investing in both Varex Imaging and ATI Physical 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 ATI Physical 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 ATI Physical Therapy, you can compare the effects of market volatilities on Varex Imaging and ATI Physical 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 ATI Physical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Varex Imaging and ATI Physical.
Diversification Opportunities for Varex Imaging and ATI Physical
-0.88 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Varex and ATI is -0.88. Overlapping area represents the amount of risk that can be diversified away by holding Varex Imaging Corp and ATI Physical Therapy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATI Physical Therapy 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 ATI Physical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATI Physical Therapy has no effect on the direction of Varex Imaging i.e., Varex Imaging and ATI Physical go up and down completely randomly.
Pair Corralation between Varex Imaging and ATI Physical
Given the investment horizon of 90 days Varex Imaging Corp is expected to generate 0.45 times more return on investment than ATI Physical. However, Varex Imaging Corp is 2.23 times less risky than ATI Physical. It trades about 0.0 of its potential returns per unit of risk. ATI Physical Therapy is currently generating about -0.06 per unit of risk. If you would invest 2,004 in Varex Imaging Corp on September 2, 2024 and sell it today you would lose (336.00) from holding Varex Imaging Corp or give up 16.77% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Varex Imaging Corp vs. ATI Physical Therapy
Performance |
| Timeline |
| Varex Imaging Corp |
| ATI Physical Therapy |
Varex Imaging and ATI Physical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Varex Imaging and ATI Physical
The main advantage of trading using opposite Varex Imaging and ATI Physical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Varex Imaging position performs unexpectedly, ATI Physical 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 ATI Physical will offset losses from the drop in ATI Physical's long position.| Varex Imaging vs. Sight Sciences | Varex Imaging vs. Apyx Medical | Varex Imaging vs. Si Bone | Varex Imaging vs. Iradimed Co |
| ATI Physical vs. Universal Health Services | ATI Physical vs. Lifestance Health Group | ATI Physical vs. Select Medical Holdings | ATI Physical vs. Acadia Healthcare |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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