Correlation Between Accuray Incorporated and Helius Medical

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

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

Diversification Opportunities for Accuray Incorporated and Helius Medical

0.14

Correlation Coefficient

Accuray Incorporated  Helius Medical

Average diversification

The 3 months correlation between Accuray and Helius is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Accuray Incorporated and Helius Medical Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Helius Medical Techn and Accuray Incorporated 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 Accuray Incorporated are associated (or correlated) with Helius Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Helius Medical Techn has no effect on the direction of Accuray Incorporated i.e., Accuray Incorporated and Helius Medical go up and down completely randomly.

Pair Corralation between Accuray Incorporated and Helius Medical

Given the investment horizon of 90 days Accuray Incorporated is expected to under-perform the Helius Medical. But the stock apears to be less risky and, when comparing its historical volatility, Accuray Incorporated is 4.95 times less risky than Helius Medical. The stock trades about -0.01 of its potential returns per unit of risk. The Helius Medical Technologies is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest  61.00  in Helius Medical Technologies on October 5, 2024 and sell it today you would earn a total of  6.00  from holding Helius Medical Technologies or generate 9.84% return on investment over 90 days.

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

Accuray Incorporated  vs.  Helius Medical Technologies

Accuray Incorporated

Risk-Adjusted Performance

3 of 100

Weak

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 February 2025.

Helius Medical Techn

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Helius Medical Technologies are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady fundamental indicators, Helius Medical unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Accuray Incorporated and Helius Medical

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

The idea behind Accuray Incorporated and Helius Medical Technologies 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 CEOs Directory module to screen CEOs from public companies around the world.