Correlation Between Claritev and AtriCure

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Can any of the company-specific risk be diversified away by investing in both Claritev and AtriCure 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 Claritev and AtriCure into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Claritev and AtriCure, you can compare the effects of market volatilities on Claritev and AtriCure 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 Claritev with a short position of AtriCure. Check out your portfolio center. Please also check ongoing floating volatility patterns of Claritev and AtriCure.

Diversification Opportunities for Claritev and AtriCure

0.05
  Correlation Coefficient

Significant diversification

The 3 months correlation between Claritev and AtriCure is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Claritev and AtriCure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AtriCure and Claritev 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 Claritev are associated (or correlated) with AtriCure. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AtriCure has no effect on the direction of Claritev i.e., Claritev and AtriCure go up and down completely randomly.

Pair Corralation between Claritev and AtriCure

Given the investment horizon of 90 days Claritev is expected to generate 2.26 times more return on investment than AtriCure. However, Claritev is 2.26 times more volatile than AtriCure. It trades about 0.19 of its potential returns per unit of risk. AtriCure is currently generating about 0.12 per unit of risk. If you would invest  2,137  in Claritev on May 4, 2025 and sell it today you would earn a total of  1,711  from holding Claritev or generate 80.07% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Claritev  vs.  AtriCure

 Performance 
       Timeline  
Claritev 

Risk-Adjusted Performance

Good

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Claritev are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating technical and fundamental indicators, Claritev showed solid returns over the last few months and may actually be approaching a breakup point.
AtriCure 

Risk-Adjusted Performance

OK

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in AtriCure are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of rather unfluctuating basic indicators, AtriCure exhibited solid returns over the last few months and may actually be approaching a breakup point.

Claritev and AtriCure Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Claritev and AtriCure

The main advantage of trading using opposite Claritev and AtriCure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Claritev position performs unexpectedly, AtriCure 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 AtriCure will offset losses from the drop in AtriCure's long position.
The idea behind Claritev and AtriCure 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.

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