Correlation Between ViewRay and Alphatec Holdings

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

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

Diversification Opportunities for ViewRay and Alphatec Holdings

-0.77

Correlation Coefficient

ViewRay  Alphatec Holdings

Pay attention - limited upside

The 3 months correlation between ViewRay and Alphatec is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding ViewRay and Alphatec Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alphatec Holdings and ViewRay 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 ViewRay 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 ViewRay i.e., ViewRay and Alphatec Holdings go up and down completely randomly.

Pair Corralation between ViewRay and Alphatec Holdings

If you would invest  556.00  in Alphatec Holdings on September 29, 2024 and sell it today you would earn a total of  363.00  from holding Alphatec Holdings or generate 65.29% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	1.59%
Values	Daily Returns

ViewRay  vs.  Alphatec Holdings

ViewRay

Risk-Adjusted Performance

0 of 100

Very Weak

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

Alphatec Holdings

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Alphatec Holdings are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of rather inconsistent technical and fundamental indicators, Alphatec Holdings exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with ViewRay and Alphatec Holdings

The main advantage of trading using opposite ViewRay and Alphatec Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ViewRay 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 ViewRay 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.