Correlation Between AtriCure and Straumann Holding

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Can any of the company-specific risk be diversified away by investing in both AtriCure and Straumann Holding 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 AtriCure and Straumann Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AtriCure and Straumann Holding AG, you can compare the effects of market volatilities on AtriCure and Straumann Holding 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 AtriCure with a short position of Straumann Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of AtriCure and Straumann Holding.

Diversification Opportunities for AtriCure and Straumann Holding

-0.83
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between AtriCure and Straumann is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding AtriCure and Straumann Holding AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Straumann Holding and AtriCure 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 AtriCure are associated (or correlated) with Straumann Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Straumann Holding has no effect on the direction of AtriCure i.e., AtriCure and Straumann Holding go up and down completely randomly.

Pair Corralation between AtriCure and Straumann Holding

Given the investment horizon of 90 days AtriCure is expected to generate 1.43 times more return on investment than Straumann Holding. However, AtriCure is 1.43 times more volatile than Straumann Holding AG. It trades about 0.14 of its potential returns per unit of risk. Straumann Holding AG is currently generating about -0.04 per unit of risk. If you would invest  2,625  in AtriCure on September 9, 2024 and sell it today you would earn a total of  800.00  from holding AtriCure or generate 30.48% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

AtriCure  vs.  Straumann Holding AG

 Performance 
       Timeline  
AtriCure 

Risk-Adjusted Performance

11 of 100

 
Weak
 
Strong
Good
Compared to the overall equity markets, risk-adjusted returns on investments in AtriCure are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of rather unfluctuating basic indicators, AtriCure exhibited solid returns over the last few months and may actually be approaching a breakup point.
Straumann Holding 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Straumann Holding AG has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong technical indicators, Straumann Holding is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

AtriCure and Straumann Holding Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with AtriCure and Straumann Holding

The main advantage of trading using opposite AtriCure and Straumann Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AtriCure position performs unexpectedly, Straumann Holding 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 Straumann Holding will offset losses from the drop in Straumann Holding's long position.
The idea behind AtriCure and Straumann Holding AG 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.
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.

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