Correlation Between Alphatec Holdings and ASEP Medical

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

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

Diversification Opportunities for Alphatec Holdings and ASEP Medical

0.0

Correlation Coefficient

Alphatec Holdings  ASEP Medical

Pay attention - limited upside

The 3 months correlation between Alphatec and ASEP is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Alphatec Holdings and ASEP Medical Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASEP Medical Holdings 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 ASEP Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ASEP Medical Holdings has no effect on the direction of Alphatec Holdings i.e., Alphatec Holdings and ASEP Medical go up and down completely randomly.

Pair Corralation between Alphatec Holdings and ASEP Medical

If you would invest  1,267  in Alphatec Holdings on May 10, 2025 and sell it today you would earn a total of  223.00  from holding Alphatec Holdings or generate 17.6% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.39%
Values	Daily Returns

Alphatec Holdings  vs.  ASEP Medical Holdings

Alphatec Holdings

Risk-Adjusted Performance

Fair

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.

ASEP Medical Holdings

Risk-Adjusted Performance

Weakest

Over the last 90 days ASEP Medical Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, ASEP Medical is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Alphatec Holdings and ASEP Medical

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

The idea behind Alphatec Holdings and ASEP Medical Holdings 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..