Correlation Between ECGI Holdings and Acutus Medical Inc

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

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

Diversification Opportunities for ECGI Holdings and Acutus Medical Inc

-0.01

Correlation Coefficient

ECGI Holdings  Acutus Medical Inc

Good diversification

The 3 months correlation between ECGI and Acutus is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding ECGI Holdings and Acutus Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acutus Medical Inc and ECGI 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 ECGI Holdings are associated (or correlated) with Acutus Medical Inc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acutus Medical Inc has no effect on the direction of ECGI Holdings i.e., ECGI Holdings and Acutus Medical Inc go up and down completely randomly.

Pair Corralation between ECGI Holdings and Acutus Medical Inc

Given the investment horizon of 90 days ECGI Holdings is expected to generate 25.13 times less return on investment than Acutus Medical Inc. But when comparing it to its historical volatility, ECGI Holdings is 8.48 times less risky than Acutus Medical Inc. It trades about 0.06 of its potential returns per unit of risk. Acutus Medical is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest  3.02  in Acutus Medical on July 26, 2025 and sell it today you would lose (2.94) from holding Acutus Medical or give up 97.35% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	99.21%
Values	Daily Returns

ECGI Holdings  vs.  Acutus Medical

ECGI Holdings

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in ECGI Holdings are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite fairly weak technical and fundamental indicators, ECGI Holdings demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Acutus Medical Inc

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Acutus Medical are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite somewhat inconsistent forward indicators, Acutus Medical Inc sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with ECGI Holdings and Acutus Medical Inc

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

The idea behind ECGI Holdings and Acutus Medical 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.