Correlation Between Electrocore LLC and Alphatec Holdings

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

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

Diversification Opportunities for Electrocore LLC and Alphatec Holdings

-0.53

Correlation Coefficient

Electrocore LLC  Alphatec Holdings

Excellent diversification

The 3 months correlation between Electrocore and Alphatec is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Electrocore LLC and Alphatec Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alphatec Holdings and Electrocore LLC 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 Electrocore LLC are associated (or correlated) with Alphatec Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alphatec Holdings has no effect on the direction of Electrocore LLC i.e., Electrocore LLC and Alphatec Holdings go up and down completely randomly.

Pair Corralation between Electrocore LLC and Alphatec Holdings

Given the investment horizon of 90 days Electrocore LLC is expected to generate 2.42 times more return on investment than Alphatec Holdings. However, Electrocore LLC is 2.42 times more volatile than Alphatec Holdings. It trades about 0.03 of its potential returns per unit of risk. Alphatec Holdings is currently generating about 0.01 per unit of risk. If you would invest  712.00  in Electrocore LLC on April 29, 2025 and sell it today you would earn a total of  7.00  from holding Electrocore LLC or generate 0.98% return on investment over 90 days.

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

Electrocore LLC  vs.  Alphatec Holdings

Electrocore LLC

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Electrocore LLC are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Even with relatively unsteady basic indicators, Electrocore LLC reported solid returns over the last few months and may actually be approaching a breakup point.

Alphatec Holdings

Risk-Adjusted Performance

Very Weak

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

Pair Trading with Electrocore LLC and Alphatec Holdings

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

The idea behind Electrocore LLC and Alphatec 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 Commodity Directory module to find actively traded commodities issued by global exchanges.