Correlation Between Varex Imaging and Cryoport

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

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

Diversification Opportunities for Varex Imaging and Cryoport

0.7

Correlation Coefficient

Varex Imaging  Cryoport

Poor diversification

The 3 months correlation between Varex and Cryoport is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Varex Imaging Corp and Cryoport in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cryoport and Varex Imaging 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 Varex Imaging Corp are associated (or correlated) with Cryoport. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cryoport has no effect on the direction of Varex Imaging i.e., Varex Imaging and Cryoport go up and down completely randomly.

Pair Corralation between Varex Imaging and Cryoport

Given the investment horizon of 90 days Varex Imaging Corp is expected to under-perform the Cryoport. But the stock apears to be less risky and, when comparing its historical volatility, Varex Imaging Corp is 2.78 times less risky than Cryoport. The stock trades about -0.07 of its potential returns per unit of risk. The Cryoport is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest  785.00  in Cryoport on December 28, 2024 and sell it today you would lose (161.00) from holding Cryoport or give up 20.51% of portfolio value over 90 days.

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

Varex Imaging Corp  vs.  Cryoport

Varex Imaging Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Varex Imaging Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's technical and fundamental indicators remain fairly strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Cryoport

Risk-Adjusted Performance

Very Weak

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

Pair Trading with Varex Imaging and Cryoport

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

The idea behind Varex Imaging Corp and Cryoport 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.