Correlation Between Acadia Healthcare and AngioDynamics
Can any of the company-specific risk be diversified away by investing in both Acadia Healthcare 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 Acadia Healthcare and AngioDynamics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Acadia Healthcare and AngioDynamics, you can compare the effects of market volatilities on Acadia Healthcare 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 Acadia Healthcare with a short position of AngioDynamics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Acadia Healthcare and AngioDynamics.
Diversification Opportunities for Acadia Healthcare and AngioDynamics
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Acadia and AngioDynamics is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Acadia Healthcare and AngioDynamics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AngioDynamics and Acadia Healthcare 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 Acadia Healthcare 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 Acadia Healthcare i.e., Acadia Healthcare and AngioDynamics go up and down completely randomly.
Pair Corralation between Acadia Healthcare and AngioDynamics
Given the investment horizon of 90 days Acadia Healthcare is expected to under-perform the AngioDynamics. But the stock apears to be less risky and, when comparing its historical volatility, Acadia Healthcare is 2.93 times less risky than AngioDynamics. The stock trades about -0.24 of its potential returns per unit of risk. The AngioDynamics is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 527.00 in AngioDynamics on January 25, 2024 and sell it today you would earn a total of 76.00 from holding AngioDynamics or generate 14.42% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Acadia Healthcare vs. AngioDynamics
Performance |
Timeline |
Acadia Healthcare |
AngioDynamics |
Acadia Healthcare and AngioDynamics Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Acadia Healthcare and AngioDynamics
The main advantage of trading using opposite Acadia Healthcare and AngioDynamics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Acadia Healthcare 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.Acadia Healthcare vs. Encompass Health Corp | Acadia Healthcare vs. Pennant Group | Acadia Healthcare vs. Select Medical Holdings | Acadia Healthcare vs. Addus HomeCare |
AngioDynamics vs. HealthStream | AngioDynamics vs. National Research Corp | AngioDynamics vs. HealthEquity | AngioDynamics vs. Health Catalyst |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
CEOs Directory Screen CEOs from public companies around the world | |
Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |