Correlation Between AngioDynamics and BioLife Solutions

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

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

Diversification Opportunities for AngioDynamics and BioLife Solutions

0.57

Correlation Coefficient

AngioDynamics  BioLife Solutions

Very weak diversification

The 3 months correlation between AngioDynamics and BioLife is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding AngioDynamics and BioLife Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BioLife Solutions 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 BioLife Solutions. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BioLife Solutions has no effect on the direction of AngioDynamics i.e., AngioDynamics and BioLife Solutions go up and down completely randomly.

Pair Corralation between AngioDynamics and BioLife Solutions

Given the investment horizon of 90 days AngioDynamics is expected to under-perform the BioLife Solutions. In addition to that, AngioDynamics is 1.06 times more volatile than BioLife Solutions. It trades about -0.09 of its total potential returns per unit of risk. BioLife Solutions is currently generating about -0.05 per unit of volatility. If you would invest  2,661  in BioLife Solutions on January 10, 2025 and sell it today you would lose (382.00) from holding BioLife Solutions or give up 14.36% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

AngioDynamics  vs.  BioLife Solutions

AngioDynamics

Risk-Adjusted Performance

Very Weak

Over the last 90 days AngioDynamics has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's technical and fundamental indicators remain very healthy which may send shares a bit higher in May 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

BioLife Solutions

Risk-Adjusted Performance

Very Weak

Over the last 90 days BioLife Solutions has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's technical and fundamental indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with AngioDynamics and BioLife Solutions

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

The idea behind AngioDynamics and BioLife Solutions 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.