Correlation Between SINTX Technologies and Accuray Incorporated

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

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

Diversification Opportunities for SINTX Technologies and Accuray Incorporated

0.38

Correlation Coefficient

SINTX Technologies  Accuray Incorporated

Weak diversification

The 3 months correlation between SINTX and Accuray is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding SINTX Technologies and Accuray Incorporated in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Accuray Incorporated and SINTX Technologies 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 SINTX Technologies are associated (or correlated) with Accuray Incorporated. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Accuray Incorporated has no effect on the direction of SINTX Technologies i.e., SINTX Technologies and Accuray Incorporated go up and down completely randomly.

Pair Corralation between SINTX Technologies and Accuray Incorporated

Given the investment horizon of 90 days SINTX Technologies is expected to generate 1.92 times more return on investment than Accuray Incorporated. However, SINTX Technologies is 1.92 times more volatile than Accuray Incorporated. It trades about 0.04 of its potential returns per unit of risk. Accuray Incorporated is currently generating about -0.01 per unit of risk. If you would invest  347.00  in SINTX Technologies on October 5, 2024 and sell it today you would earn a total of  3.00  from holding SINTX Technologies or generate 0.86% return on investment over 90 days.

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

SINTX Technologies  vs.  Accuray Incorporated

SINTX Technologies

Risk-Adjusted Performance

5 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in SINTX Technologies are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, SINTX Technologies unveiled solid returns over the last few months and may actually be approaching a breakup point.

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.

Pair Trading with SINTX Technologies and Accuray Incorporated

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

The idea behind SINTX Technologies and Accuray Incorporated 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.