Correlation Between ICU Medical and AngioDynamics
Can any of the company-specific risk be diversified away by investing in both ICU Medical and AngioDynamics 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 ICU Medical and AngioDynamics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ICU Medical and AngioDynamics, you can compare the effects of market volatilities on ICU Medical and AngioDynamics 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 ICU Medical with a short position of AngioDynamics. Check out your portfolio center. Please also check ongoing floating volatility patterns of ICU Medical and AngioDynamics.
Diversification Opportunities for ICU Medical and AngioDynamics
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between ICU and AngioDynamics is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding ICU Medical and AngioDynamics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AngioDynamics and ICU Medical 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 ICU Medical are associated (or correlated) with AngioDynamics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AngioDynamics has no effect on the direction of ICU Medical i.e., ICU Medical and AngioDynamics go up and down completely randomly.
Pair Corralation between ICU Medical and AngioDynamics
Given the investment horizon of 90 days ICU Medical is expected to under-perform the AngioDynamics. But the stock apears to be less risky and, when comparing its historical volatility, ICU Medical is 1.04 times less risky than AngioDynamics. The stock trades about -0.23 of its potential returns per unit of risk. The AngioDynamics is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 1,048 in AngioDynamics on July 18, 2025 and sell it today you would earn a total of 135.00 from holding AngioDynamics or generate 12.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ICU Medical vs. AngioDynamics
Performance |
| Timeline |
| ICU Medical |
| AngioDynamics |
ICU Medical and AngioDynamics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ICU Medical and AngioDynamics
The main advantage of trading using opposite ICU Medical and AngioDynamics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ICU Medical position performs unexpectedly, AngioDynamics 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 AngioDynamics will offset losses from the drop in AngioDynamics' long position.| ICU Medical vs. The Cooper Companies, | ICU Medical vs. West Pharmaceutical Services | ICU Medical vs. AngioDynamics | ICU Medical vs. AptarGroup |
| AngioDynamics vs. AtriCure | AngioDynamics vs. ICU Medical | AngioDynamics vs. Haemonetics | AngioDynamics vs. CONMED |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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