Correlation Between Acutus Medical and Baird Medical

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

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

Diversification Opportunities for Acutus Medical and Baird Medical

-0.4

Correlation Coefficient

Acutus Medical  Baird Medical

Very good diversification

The 3 months correlation between Acutus and Baird is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Acutus Medical and Baird Medical Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baird Medical Investment and Acutus Medical 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 Acutus Medical are associated (or correlated) with Baird Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baird Medical Investment has no effect on the direction of Acutus Medical i.e., Acutus Medical and Baird Medical go up and down completely randomly.

Pair Corralation between Acutus Medical and Baird Medical

If you would invest  177.00  in Baird Medical Investment on October 25, 2024 and sell it today you would earn a total of  638.00  from holding Baird Medical Investment or generate 360.45% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	5.26%
Values	Daily Returns

Acutus Medical  vs.  Baird Medical Investment

Acutus Medical

Risk-Adjusted Performance

0 of 100

Very Weak

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

Baird Medical Investment

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Baird Medical Investment are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of rather abnormal primary indicators, Baird Medical exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Acutus Medical and Baird Medical

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

The idea behind Acutus Medical and Baird Medical Investment 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.