Correlation Between ATRION and Haemonetics
Can any of the company-specific risk be diversified away by investing in both ATRION and Haemonetics 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 ATRION and Haemonetics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ATRION and Haemonetics, you can compare the effects of market volatilities on ATRION and Haemonetics 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 ATRION with a short position of Haemonetics. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATRION and Haemonetics.
Diversification Opportunities for ATRION and Haemonetics
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between ATRION and Haemonetics is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding ATRION and Haemonetics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haemonetics and ATRION 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 ATRION are associated (or correlated) with Haemonetics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Haemonetics has no effect on the direction of ATRION i.e., ATRION and Haemonetics go up and down completely randomly.
Pair Corralation between ATRION and Haemonetics
Given the investment horizon of 90 days ATRION is expected to generate 1.83 times less return on investment than Haemonetics. In addition to that, ATRION is 2.54 times more volatile than Haemonetics. It trades about 0.05 of its total potential returns per unit of risk. Haemonetics is currently generating about 0.23 per unit of volatility. If you would invest 8,479 in Haemonetics on January 31, 2024 and sell it today you would earn a total of 671.00 from holding Haemonetics or generate 7.91% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
ATRION vs. Haemonetics
Performance |
Timeline |
ATRION |
Haemonetics |
ATRION and Haemonetics Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with ATRION and Haemonetics
The main advantage of trading using opposite ATRION and Haemonetics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATRION position performs unexpectedly, Haemonetics 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 Haemonetics will offset losses from the drop in Haemonetics' long position.ATRION vs. Novo Integrated Sciences | ATRION vs. HCA Holdings | ATRION vs. Acadia Healthcare | ATRION vs. Pennant Group |
Haemonetics vs. Novo Integrated Sciences | Haemonetics vs. HCA Holdings | Haemonetics vs. Acadia Healthcare | Haemonetics 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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