Correlation Between Doximity and AtriCure

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

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

Diversification Opportunities for Doximity and AtriCure

-0.53

Correlation Coefficient

Doximity  AtriCure

Excellent diversification

The 3 months correlation between Doximity and AtriCure is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Doximity and AtriCure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AtriCure and Doximity 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 Doximity 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 Doximity i.e., Doximity and AtriCure go up and down completely randomly.

Pair Corralation between Doximity and AtriCure

Given the investment horizon of 90 days Doximity is expected to generate 2.02 times less return on investment than AtriCure. In addition to that, Doximity is 1.11 times more volatile than AtriCure. It trades about 0.03 of its total potential returns per unit of risk. AtriCure is currently generating about 0.07 per unit of volatility. If you would invest  2,929  in AtriCure on May 1, 2025 and sell it today you would earn a total of  244.00  from holding AtriCure or generate 8.33% return on investment over 90 days.

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

Doximity  vs.  AtriCure

Doximity

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Doximity are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable fundamental indicators, Doximity is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

AtriCure

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in AtriCure are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of rather unfluctuating basic indicators, AtriCure may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Doximity and AtriCure

The main advantage of trading using opposite Doximity and AtriCure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Doximity 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 Doximity 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.

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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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.