Correlation Between Alphatec Holdings and Aclarion

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

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

Diversification Opportunities for Alphatec Holdings and Aclarion

-0.29

Correlation Coefficient

Alphatec Holdings  Aclarion

Very good diversification

The 3 months correlation between Alphatec and Aclarion is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Alphatec Holdings and Aclarion in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aclarion and Alphatec Holdings 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 Alphatec Holdings are associated (or correlated) with Aclarion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aclarion has no effect on the direction of Alphatec Holdings i.e., Alphatec Holdings and Aclarion go up and down completely randomly.

Pair Corralation between Alphatec Holdings and Aclarion

Given the investment horizon of 90 days Alphatec Holdings is expected to generate 1.57 times more return on investment than Aclarion. However, Alphatec Holdings is 1.57 times more volatile than Aclarion. It trades about 0.08 of its potential returns per unit of risk. Aclarion is currently generating about -0.02 per unit of risk. If you would invest  1,267  in Alphatec Holdings on May 12, 2025 and sell it today you would earn a total of  230.00  from holding Alphatec Holdings or generate 18.15% return on investment over 90 days.

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

Alphatec Holdings  vs.  Aclarion

Alphatec Holdings

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Alphatec Holdings are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak technical and fundamental indicators, Alphatec Holdings exhibited solid returns over the last few months and may actually be approaching a breakup point.

Aclarion

Risk-Adjusted Performance

Weakest

Over the last 90 days Aclarion has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Aclarion is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Alphatec Holdings and Aclarion

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

The idea behind Alphatec Holdings and Aclarion 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.