Correlation Between InfuSystems Holdings and Stereotaxis

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

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

Diversification Opportunities for InfuSystems Holdings and Stereotaxis

0.73

Correlation Coefficient

InfuSystems Holdings  Stereotaxis

Poor diversification

The 3 months correlation between InfuSystems and Stereotaxis is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding InfuSystems Holdings and Stereotaxis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stereotaxis and InfuSystems 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 InfuSystems Holdings are associated (or correlated) with Stereotaxis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stereotaxis has no effect on the direction of InfuSystems Holdings i.e., InfuSystems Holdings and Stereotaxis go up and down completely randomly.

Pair Corralation between InfuSystems Holdings and Stereotaxis

Given the investment horizon of 90 days InfuSystems Holdings is expected to generate 1.05 times more return on investment than Stereotaxis. However, InfuSystems Holdings is 1.05 times more volatile than Stereotaxis. It trades about 0.24 of its potential returns per unit of risk. Stereotaxis is currently generating about 0.12 per unit of risk. If you would invest  571.00  in InfuSystems Holdings on July 30, 2025 and sell it today you would earn a total of  430.00  from holding InfuSystems Holdings or generate 75.31% return on investment over 90 days.

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

InfuSystems Holdings  vs.  Stereotaxis

InfuSystems Holdings

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in InfuSystems Holdings are ranked lower than 19 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady technical and fundamental indicators, InfuSystems Holdings unveiled solid returns over the last few months and may actually be approaching a breakup point.

Stereotaxis

Risk-Adjusted Performance

Fair

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

Pair Trading with InfuSystems Holdings and Stereotaxis

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

The idea behind InfuSystems Holdings and Stereotaxis 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.