Correlation Between AtriCure and Stereotaxis

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

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

Diversification Opportunities for AtriCure and Stereotaxis

0.88

Correlation Coefficient

AtriCure  Stereotaxis

Very poor diversification

The 3 months correlation between AtriCure and Stereotaxis is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding AtriCure and Stereotaxis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stereotaxis and AtriCure 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 AtriCure are associated (or correlated) with Stereotaxis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stereotaxis has no effect on the direction of AtriCure i.e., AtriCure and Stereotaxis go up and down completely randomly.

Pair Corralation between AtriCure and Stereotaxis

Given the investment horizon of 90 days AtriCure is expected to under-perform the Stereotaxis. But the stock apears to be less risky and, when comparing its historical volatility, AtriCure is 1.42 times less risky than Stereotaxis. The stock trades about -0.02 of its potential returns per unit of risk. The Stereotaxis is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest  172.00  in Stereotaxis on January 31, 2025 and sell it today you would earn a total of  32.00  from holding Stereotaxis or generate 18.6% return on investment over 90 days.

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

AtriCure  vs.  Stereotaxis

AtriCure

Risk-Adjusted Performance

Very Weak

Over the last 90 days AtriCure has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's basic indicators remain rather sound which may send shares a bit higher in June 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Stereotaxis

Risk-Adjusted Performance

Very Weak

Over the last 90 days Stereotaxis has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in June 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with AtriCure and Stereotaxis

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

The idea behind AtriCure and Stereotaxis 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.