Correlation Between AngioDynamics and Accuray Incorporated

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

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

Diversification Opportunities for AngioDynamics and Accuray Incorporated

0.26

Correlation Coefficient

AngioDynamics  Accuray Incorporated

Modest diversification

The 3 months correlation between AngioDynamics and Accuray is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding AngioDynamics and Accuray Incorporated in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Accuray Incorporated and AngioDynamics 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 AngioDynamics are associated (or correlated) with Accuray Incorporated. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Accuray Incorporated has no effect on the direction of AngioDynamics i.e., AngioDynamics and Accuray Incorporated go up and down completely randomly.

Pair Corralation between AngioDynamics and Accuray Incorporated

Given the investment horizon of 90 days AngioDynamics is expected to generate 11.09 times less return on investment than Accuray Incorporated. But when comparing it to its historical volatility, AngioDynamics is 1.27 times less risky than Accuray Incorporated. It trades about 0.01 of its potential returns per unit of risk. Accuray Incorporated is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  202.00  in Accuray Incorporated on September 4, 2024 and sell it today you would earn a total of  13.00  from holding Accuray Incorporated or generate 6.44% return on investment over 90 days.

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

AngioDynamics  vs.  Accuray Incorporated

AngioDynamics

Risk-Adjusted Performance

0 of 100

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 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.

Accuray Incorporated

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Accuray Incorporated are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, Accuray Incorporated may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with AngioDynamics and Accuray Incorporated

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

The idea behind AngioDynamics and Accuray Incorporated 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 Global Correlations module to find global opportunities by holding instruments from different markets.