Correlation Between Tourmaline Bio and AngioDynamics

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

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

Diversification Opportunities for Tourmaline Bio and AngioDynamics

-0.31

Correlation Coefficient

Tourmaline Bio  AngioDynamics

Very good diversification

The 3 months correlation between Tourmaline and AngioDynamics is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Tourmaline Bio and AngioDynamics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AngioDynamics and Tourmaline Bio 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 Tourmaline Bio 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 Tourmaline Bio i.e., Tourmaline Bio and AngioDynamics go up and down completely randomly.

Pair Corralation between Tourmaline Bio and AngioDynamics

Given the investment horizon of 90 days Tourmaline Bio is expected to generate 1.1 times more return on investment than AngioDynamics. However, Tourmaline Bio is 1.1 times more volatile than AngioDynamics. It trades about 0.16 of its potential returns per unit of risk. AngioDynamics is currently generating about -0.03 per unit of risk. If you would invest  1,620  in Tourmaline Bio on May 20, 2025 and sell it today you would earn a total of  597.00  from holding Tourmaline Bio or generate 36.85% return on investment over 90 days.

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

Tourmaline Bio  vs.  AngioDynamics

Tourmaline Bio

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Tourmaline Bio are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite quite weak primary indicators, Tourmaline Bio disclosed solid returns over the last few months and may actually be approaching a breakup point.

AngioDynamics

Risk-Adjusted Performance

Weakest

Over the last 90 days AngioDynamics has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy technical and fundamental indicators, AngioDynamics is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Tourmaline Bio and AngioDynamics

The main advantage of trading using opposite Tourmaline Bio and AngioDynamics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tourmaline Bio 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 Tourmaline Bio 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.

Check out your portfolio center.

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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.