Correlation Between Accuray Incorporated and Stereotaxis

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

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

Diversification Opportunities for Accuray Incorporated and Stereotaxis

0.61

Correlation Coefficient

Accuray Incorporated  Stereotaxis

Poor diversification

The 3 months correlation between Accuray and Stereotaxis is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Accuray Incorporated and Stereotaxis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stereotaxis 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 Stereotaxis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stereotaxis has no effect on the direction of Accuray Incorporated i.e., Accuray Incorporated and Stereotaxis go up and down completely randomly.

Pair Corralation between Accuray Incorporated and Stereotaxis

Given the investment horizon of 90 days Accuray Incorporated is expected to generate 1.03 times less return on investment than Stereotaxis. In addition to that, Accuray Incorporated is 1.02 times more volatile than Stereotaxis. It trades about 0.04 of its total potential returns per unit of risk. Stereotaxis is currently generating about 0.04 per unit of volatility. If you would invest  224.00  in Stereotaxis on September 2, 2024 and sell it today you would earn a total of  15.00  from holding Stereotaxis or generate 6.7% return on investment over 90 days.

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

Accuray Incorporated  vs.  Stereotaxis

Accuray Incorporated

Risk-Adjusted Performance

3 of 100

Insignificant

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 January 2025.

Stereotaxis

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Stereotaxis are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Stereotaxis may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Accuray Incorporated and Stereotaxis

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

The idea behind Accuray Incorporated and Stereotaxis 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.