Correlation Between Perimeter Medical and Aurora Spine

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

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

Diversification Opportunities for Perimeter Medical and Aurora Spine

0.63

Correlation Coefficient

Perimeter Medical  Aurora Spine

Poor diversification

The 3 months correlation between Perimeter and Aurora is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Perimeter Medical Imaging and Aurora Spine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aurora Spine and Perimeter 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 Perimeter Medical Imaging are associated (or correlated) with Aurora Spine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aurora Spine has no effect on the direction of Perimeter Medical i.e., Perimeter Medical and Aurora Spine go up and down completely randomly.

Pair Corralation between Perimeter Medical and Aurora Spine

Assuming the 90 days horizon Perimeter Medical is expected to generate 1.58 times less return on investment than Aurora Spine. In addition to that, Perimeter Medical is 1.02 times more volatile than Aurora Spine. It trades about 0.02 of its total potential returns per unit of risk. Aurora Spine is currently generating about 0.04 per unit of volatility. If you would invest  22.00  in Aurora Spine on June 25, 2025 and sell it today you would earn a total of  1.00  from holding Aurora Spine or generate 4.55% return on investment over 90 days.

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

Perimeter Medical Imaging  vs.  Aurora Spine

Perimeter Medical Imaging

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Perimeter Medical Imaging are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak forward-looking signals, Perimeter Medical may actually be approaching a critical reversion point that can send shares even higher in October 2025.

Aurora Spine

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Aurora Spine are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly abnormal basic indicators, Aurora Spine may actually be approaching a critical reversion point that can send shares even higher in October 2025.

Pair Trading with Perimeter Medical and Aurora Spine

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

The idea behind Perimeter Medical Imaging and Aurora Spine 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.