Correlation Between Acutus MedicalInc and Predictive Oncology

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

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

Diversification Opportunities for Acutus MedicalInc and Predictive Oncology

0.63

Correlation Coefficient

Acutus MedicalInc  Predictive Oncology

Poor diversification

The 3 months correlation between Acutus and Predictive is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Acutus MedicalInc and Predictive Oncology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Predictive Oncology and Acutus MedicalInc 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 Acutus MedicalInc are associated (or correlated) with Predictive Oncology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Predictive Oncology has no effect on the direction of Acutus MedicalInc i.e., Acutus MedicalInc and Predictive Oncology go up and down completely randomly.

Pair Corralation between Acutus MedicalInc and Predictive Oncology

Given the investment horizon of 90 days Acutus MedicalInc is expected to under-perform the Predictive Oncology. In addition to that, Acutus MedicalInc is 1.27 times more volatile than Predictive Oncology. It trades about -0.4 of its total potential returns per unit of risk. Predictive Oncology is currently generating about 0.16 per unit of volatility. If you would invest  139.00  in Predictive Oncology on February 16, 2024 and sell it today you would earn a total of  35.00  from holding Predictive Oncology or generate 25.18% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	86.36%
Values	Daily Returns

Acutus MedicalInc  vs.  Predictive Oncology

Acutus MedicalInc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Acutus MedicalInc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unfluctuating performance in the last few months, the Stock's forward indicators remain somewhat strong which may send shares a bit higher in June 2024. The current disturbance may also be a sign of long term up-swing for the company investors.

Predictive Oncology

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Predictive Oncology has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in June 2024. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with Acutus MedicalInc and Predictive Oncology

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

The idea behind Acutus MedicalInc and Predictive Oncology 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.