Correlation Between Dentsply Sirona and AtriCure
Can any of the company-specific risk be diversified away by investing in both Dentsply Sirona 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 Dentsply Sirona and AtriCure into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dentsply Sirona and AtriCure, you can compare the effects of market volatilities on Dentsply Sirona 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 Dentsply Sirona with a short position of AtriCure. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dentsply Sirona and AtriCure.
Diversification Opportunities for Dentsply Sirona and AtriCure
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Dentsply and AtriCure is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding Dentsply Sirona and AtriCure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AtriCure and Dentsply Sirona 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 Dentsply Sirona 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 Dentsply Sirona i.e., Dentsply Sirona and AtriCure go up and down completely randomly.
Pair Corralation between Dentsply Sirona and AtriCure
Given the investment horizon of 90 days Dentsply Sirona is expected to under-perform the AtriCure. In addition to that, Dentsply Sirona is 1.36 times more volatile than AtriCure. It trades about -0.1 of its total potential returns per unit of risk. AtriCure is currently generating about 0.25 per unit of volatility. 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 | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dentsply Sirona vs. AtriCure
Performance |
| Timeline |
| Dentsply Sirona |
| AtriCure |
Dentsply Sirona and AtriCure Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dentsply Sirona and AtriCure
The main advantage of trading using opposite Dentsply Sirona and AtriCure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dentsply Sirona 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.| Dentsply Sirona vs. Merit Medical Systems | Dentsply Sirona vs. ICU Medical | Dentsply Sirona vs. The Cooper Companies, | Dentsply Sirona vs. AngioDynamics |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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