Correlation Between Acutus Medical and Huize Holding

Can any of the company-specific risk be diversified away by investing in both Acutus Medical and Huize Holding 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 Acutus Medical and Huize Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Acutus Medical and Huize Holding, you can compare the effects of market volatilities on Acutus Medical and Huize Holding 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 Acutus Medical with a short position of Huize Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Acutus Medical and Huize Holding.

Diversification Opportunities for Acutus Medical and Huize Holding

0.37

Correlation Coefficient

Acutus Medical  Huize Holding

Weak diversification

The 3 months correlation between Acutus and Huize is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Acutus Medical and Huize Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huize Holding and Acutus Medical 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 Acutus Medical are associated (or correlated) with Huize Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Huize Holding has no effect on the direction of Acutus Medical i.e., Acutus Medical and Huize Holding go up and down completely randomly.

Pair Corralation between Acutus Medical and Huize Holding

Given the investment horizon of 90 days Acutus Medical is expected to generate 4.84 times more return on investment than Huize Holding. However, Acutus Medical is 4.84 times more volatile than Huize Holding. It trades about 0.2 of its potential returns per unit of risk. Huize Holding is currently generating about 0.1 per unit of risk. If you would invest  0.02  in Acutus Medical on July 24, 2025 and sell it today you would earn a total of  0.03  from holding Acutus Medical or generate 150.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.44%
Values	Daily Returns

Acutus Medical  vs.  Huize Holding

Acutus Medical

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Acutus Medical are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Despite somewhat inconsistent forward indicators, Acutus Medical sustained solid returns over the last few months and may actually be approaching a breakup point.

Huize Holding

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Huize Holding are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of fairly inconsistent forward indicators, Huize Holding showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Acutus Medical and Huize Holding

The main advantage of trading using opposite Acutus Medical and Huize Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Acutus Medical position performs unexpectedly, Huize Holding 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 Huize Holding will offset losses from the drop in Huize Holding's long position.

The idea behind Acutus Medical and Huize Holding pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.