Correlation Between AngioDynamics and Tourmaline Bio

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

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

Diversification Opportunities for AngioDynamics and Tourmaline Bio

-0.15

Correlation Coefficient

AngioDynamics  Tourmaline Bio

Good diversification

The 3 months correlation between AngioDynamics and Tourmaline is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding AngioDynamics and Tourmaline Bio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tourmaline Bio 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 Tourmaline Bio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tourmaline Bio has no effect on the direction of AngioDynamics i.e., AngioDynamics and Tourmaline Bio go up and down completely randomly.

Pair Corralation between AngioDynamics and Tourmaline Bio

Given the investment horizon of 90 days AngioDynamics is expected to under-perform the Tourmaline Bio. But the stock apears to be less risky and, when comparing its historical volatility, AngioDynamics is 1.15 times less risky than Tourmaline Bio. The stock trades about -0.05 of its potential returns per unit of risk. The Tourmaline Bio is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest  1,578  in Tourmaline Bio on May 12, 2025 and sell it today you would earn a total of  494.00  from holding Tourmaline Bio or generate 31.31% return on investment over 90 days.

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

AngioDynamics  vs.  Tourmaline Bio

AngioDynamics

Risk-Adjusted Performance

Weakest

Over the last 90 days AngioDynamics 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 healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

Tourmaline Bio

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Tourmaline Bio are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite quite unsteady primary indicators, Tourmaline Bio disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with AngioDynamics and Tourmaline Bio

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

The idea behind AngioDynamics and Tourmaline Bio 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..