Correlation Between Haemonetics and Azenta

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

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

Diversification Opportunities for Haemonetics and Azenta

0.0

Correlation Coefficient

Haemonetics  Azenta

Pay attention - limited upside

The 3 months correlation between Haemonetics and Azenta is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Haemonetics and Azenta Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Azenta Inc and Haemonetics 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 Haemonetics are associated (or correlated) with Azenta. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Azenta Inc has no effect on the direction of Haemonetics i.e., Haemonetics and Azenta go up and down completely randomly.

Pair Corralation between Haemonetics and Azenta

Considering the 90-day investment horizon Haemonetics is expected to generate 0.86 times more return on investment than Azenta. However, Haemonetics is 1.16 times less risky than Azenta. It trades about 0.08 of its potential returns per unit of risk. Azenta Inc is currently generating about -0.02 per unit of risk. If you would invest  7,609  in Haemonetics on September 13, 2024 and sell it today you would earn a total of  725.00  from holding Haemonetics or generate 9.53% return on investment over 90 days.

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

Haemonetics  vs.  Azenta Inc

Haemonetics

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Haemonetics are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of rather inconsistent basic indicators, Haemonetics may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Azenta Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Azenta Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Azenta is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Haemonetics and Azenta

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

The idea behind Haemonetics and Azenta Inc 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.