Correlation Between Europac Gold and AngioDynamics

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

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

Diversification Opportunities for Europac Gold and AngioDynamics

-0.28

Correlation Coefficient

Europac Gold  AngioDynamics

Very good diversification

The 3 months correlation between EUROPAC and AngioDynamics is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Europac Gold Fund and AngioDynamics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AngioDynamics and Europac Gold 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 Europac Gold Fund are associated (or correlated) with AngioDynamics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AngioDynamics has no effect on the direction of Europac Gold i.e., Europac Gold and AngioDynamics go up and down completely randomly.

Pair Corralation between Europac Gold and AngioDynamics

Assuming the 90 days horizon Europac Gold Fund is expected to generate 0.61 times more return on investment than AngioDynamics. However, Europac Gold Fund is 1.64 times less risky than AngioDynamics. It trades about 0.13 of its potential returns per unit of risk. AngioDynamics is currently generating about -0.06 per unit of risk. If you would invest  1,020  in Europac Gold Fund on February 3, 2025 and sell it today you would earn a total of  183.00  from holding Europac Gold Fund or generate 17.94% return on investment over 90 days.

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

Europac Gold Fund  vs.  AngioDynamics

Europac Gold

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Europac Gold Fund are ranked lower than 10 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak technical and fundamental indicators, Europac Gold showed solid returns over the last few months and may actually be approaching a breakup point.

AngioDynamics

Risk-Adjusted Performance

Very Weak

Over the last 90 days AngioDynamics has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's technical and fundamental indicators remain very healthy which may send shares a bit higher in June 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Europac Gold and AngioDynamics

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

The idea behind Europac Gold Fund and AngioDynamics 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.