Correlation Between AtriCure and Akoya Biosciences
Can any of the company-specific risk be diversified away by investing in both AtriCure and Akoya Biosciences 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 AtriCure and Akoya Biosciences into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AtriCure and Akoya Biosciences, you can compare the effects of market volatilities on AtriCure and Akoya Biosciences 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 AtriCure with a short position of Akoya Biosciences. Check out your portfolio center. Please also check ongoing floating volatility patterns of AtriCure and Akoya Biosciences.
Diversification Opportunities for AtriCure and Akoya Biosciences
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between AtriCure and Akoya is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding AtriCure and Akoya Biosciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Akoya Biosciences and AtriCure 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 AtriCure are associated (or correlated) with Akoya Biosciences. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Akoya Biosciences has no effect on the direction of AtriCure i.e., AtriCure and Akoya Biosciences go up and down completely randomly.
Pair Corralation between AtriCure and Akoya Biosciences
Given the investment horizon of 90 days AtriCure is expected to under-perform the Akoya Biosciences. But the stock apears to be less risky and, when comparing its historical volatility, AtriCure is 1.62 times less risky than Akoya Biosciences. The stock trades about -0.16 of its potential returns per unit of risk. The Akoya Biosciences is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest 645.00 in Akoya Biosciences on January 31, 2024 and sell it today you would lose (259.00) from holding Akoya Biosciences or give up 40.16% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
AtriCure vs. Akoya Biosciences
Performance |
Timeline |
AtriCure |
Akoya Biosciences |
AtriCure and Akoya Biosciences Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with AtriCure and Akoya Biosciences
The main advantage of trading using opposite AtriCure and Akoya Biosciences positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AtriCure position performs unexpectedly, Akoya Biosciences 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 Akoya Biosciences will offset losses from the drop in Akoya Biosciences' long position.AtriCure vs. Novo Integrated Sciences | AtriCure vs. HCA Holdings | AtriCure vs. Acadia Healthcare | AtriCure vs. Pennant Group |
Akoya Biosciences vs. Novo Integrated Sciences | Akoya Biosciences vs. HCA Holdings | Akoya Biosciences vs. Acadia Healthcare | Akoya Biosciences vs. Pennant Group |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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