Correlation Between AngioDynamics and Design Therapeutics

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

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

Diversification Opportunities for AngioDynamics and Design Therapeutics

0.83

Correlation Coefficient

AngioDynamics  Design Therapeutics

Very poor diversification

The 3 months correlation between AngioDynamics and Design is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding AngioDynamics and Design Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Design Therapeutics 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 Design Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Design Therapeutics has no effect on the direction of AngioDynamics i.e., AngioDynamics and Design Therapeutics go up and down completely randomly.

Pair Corralation between AngioDynamics and Design Therapeutics

Given the investment horizon of 90 days AngioDynamics is expected to generate 3.29 times less return on investment than Design Therapeutics. But when comparing it to its historical volatility, AngioDynamics is 2.23 times less risky than Design Therapeutics. It trades about 0.11 of its potential returns per unit of risk. Design Therapeutics is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest  404.00  in Design Therapeutics on July 10, 2025 and sell it today you would earn a total of  245.00  from holding Design Therapeutics or generate 60.64% return on investment over 90 days.

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

AngioDynamics  vs.  Design Therapeutics

AngioDynamics

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in AngioDynamics are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating technical and fundamental indicators, AngioDynamics displayed solid returns over the last few months and may actually be approaching a breakup point.

Design Therapeutics

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Design Therapeutics are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of very weak technical and fundamental indicators, Design Therapeutics displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with AngioDynamics and Design Therapeutics

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

The idea behind AngioDynamics and Design Therapeutics 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.