Correlation Between ATRION and AtriCure

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

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

Diversification Opportunities for ATRION and AtriCure

0.0

Correlation Coefficient

ATRION  AtriCure

Pay attention - limited upside

The 3 months correlation between ATRION and AtriCure is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ATRION and AtriCure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AtriCure and ATRION 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 ATRION are associated (or correlated) with AtriCure. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AtriCure has no effect on the direction of ATRION i.e., ATRION and AtriCure go up and down completely randomly.

Pair Corralation between ATRION and AtriCure

If you would invest  3,025  in AtriCure on December 29, 2024 and sell it today you would earn a total of  158.00  from holding AtriCure or generate 5.22% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

ATRION  vs.  AtriCure

ATRION

Risk-Adjusted Performance

Very Weak

Over the last 90 days ATRION has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, ATRION is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

AtriCure

Risk-Adjusted Performance

Insignificant

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

Pair Trading with ATRION and AtriCure

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

The idea behind ATRION and AtriCure 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.