Correlation Between Orthofix Medical and Alphatec Holdings

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

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

Diversification Opportunities for Orthofix Medical and Alphatec Holdings

-0.06

Correlation Coefficient

Orthofix Medical  Alphatec Holdings

Good diversification

The 3 months correlation between Orthofix and Alphatec is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Orthofix Medical and Alphatec Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alphatec Holdings and Orthofix Medical 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 Orthofix Medical 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 Orthofix Medical i.e., Orthofix Medical and Alphatec Holdings go up and down completely randomly.

Pair Corralation between Orthofix Medical and Alphatec Holdings

Given the investment horizon of 90 days Orthofix Medical is expected to under-perform the Alphatec Holdings. In addition to that, Orthofix Medical is 1.02 times more volatile than Alphatec Holdings. It trades about -0.11 of its total potential returns per unit of risk. Alphatec Holdings is currently generating about 0.0 per unit of volatility. If you would invest  1,064  in Alphatec Holdings on April 21, 2025 and sell it today you would lose (15.00) from holding Alphatec Holdings or give up 1.41% of portfolio value over 90 days.

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

Orthofix Medical  vs.  Alphatec Holdings

Orthofix Medical

Risk-Adjusted Performance

Very Weak

Over the last 90 days Orthofix Medical has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's forward indicators remain fairly strong which may send shares a bit higher in August 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

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 Orthofix Medical and Alphatec Holdings

The main advantage of trading using opposite Orthofix Medical and Alphatec Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Orthofix Medical 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 Orthofix Medical 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.