Correlation Between AngioDynamics and ATRION

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

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

Diversification Opportunities for AngioDynamics and ATRION

0.49

Correlation Coefficient

AngioDynamics  ATRION

Very weak diversification

The 3 months correlation between AngioDynamics and ATRION is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding AngioDynamics and ATRION in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATRION and AngioDynamics 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 AngioDynamics are associated (or correlated) with ATRION. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATRION has no effect on the direction of AngioDynamics i.e., AngioDynamics and ATRION go up and down completely randomly.

Pair Corralation between AngioDynamics and ATRION

If you would invest  699.00  in AngioDynamics on September 27, 2024 and sell it today you would earn a total of  170.00  from holding AngioDynamics or generate 24.32% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	0.0%
Values	Daily Returns

AngioDynamics  vs.  ATRION

AngioDynamics

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in AngioDynamics are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of very inconsistent technical and fundamental indicators, AngioDynamics displayed solid returns over the last few months and may actually be approaching a breakup point.

ATRION

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days ATRION has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, ATRION is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with AngioDynamics and ATRION

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

The idea behind AngioDynamics and ATRION 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.

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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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.