Correlation Between Accuray Incorporated and Nu-Med Plus

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

By analyzing existing cross correlation between Accuray Incorporated and Nu Med Plus, you can compare the effects of market volatilities on Accuray Incorporated and Nu-Med Plus 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 Nu-Med Plus. Check out your portfolio center. Please also check ongoing floating volatility patterns of Accuray Incorporated and Nu-Med Plus.

Diversification Opportunities for Accuray Incorporated and Nu-Med Plus

0.04

Correlation Coefficient

Accuray Incorporated  Nu-Med Plus

Significant diversification

The 3 months correlation between Accuray and Nu-Med is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Accuray Incorporated and Nu Med Plus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nu Med Plus 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 Nu-Med Plus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nu Med Plus has no effect on the direction of Accuray Incorporated i.e., Accuray Incorporated and Nu-Med Plus go up and down completely randomly.

Pair Corralation between Accuray Incorporated and Nu-Med Plus

Given the investment horizon of 90 days Accuray Incorporated is expected to generate 0.3 times more return on investment than Nu-Med Plus. However, Accuray Incorporated is 3.36 times less risky than Nu-Med Plus. It trades about 0.01 of its potential returns per unit of risk. Nu Med Plus is currently generating about 0.0 per unit of risk. If you would invest  187.00  in Accuray Incorporated on December 21, 2024 and sell it today you would lose (2.00) from holding Accuray Incorporated or give up 1.07% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	96.72%
Values	Daily Returns

Accuray Incorporated  vs.  Nu Med Plus

Accuray Incorporated

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Accuray Incorporated are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of fairly strong basic indicators, Accuray Incorporated is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Nu Med Plus

Risk-Adjusted Performance

Very Weak

Over the last 90 days Nu Med Plus has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound primary indicators, Nu-Med Plus is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Accuray Incorporated and Nu-Med Plus

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

The idea behind Accuray Incorporated and Nu Med Plus 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.