Correlation Between Southern Home and AngioDynamics
Can any of the company-specific risk be diversified away by investing in both Southern Home 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 Southern Home and AngioDynamics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Southern Home Medicl and AngioDynamics, you can compare the effects of market volatilities on Southern Home 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 Southern Home with a short position of AngioDynamics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Southern Home and AngioDynamics.
Diversification Opportunities for Southern Home and AngioDynamics
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Southern and AngioDynamics is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Southern Home Medicl and AngioDynamics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AngioDynamics and Southern Home 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 Southern Home Medicl 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 Southern Home i.e., Southern Home and AngioDynamics go up and down completely randomly.
Pair Corralation between Southern Home and AngioDynamics
Given the investment horizon of 90 days Southern Home Medicl is expected to under-perform the AngioDynamics. In addition to that, Southern Home is 6.28 times more volatile than AngioDynamics. It trades about -0.12 of its total potential returns per unit of risk. AngioDynamics is currently generating about 0.14 per unit of volatility. If you would invest 1,046 in AngioDynamics on September 2, 2025 and sell it today you would earn a total of 194.00 from holding AngioDynamics or generate 18.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Southern Home Medicl vs. AngioDynamics
Performance |
| Timeline |
| Southern Home Medicl |
| AngioDynamics |
Southern Home and AngioDynamics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Southern Home and AngioDynamics
The main advantage of trading using opposite Southern Home and AngioDynamics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Southern Home 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.| Southern Home vs. Westrock Coffee | Southern Home vs. BJs Restaurants | Southern Home vs. National Retail Properties | Southern Home vs. Flow Traders |
| AngioDynamics vs. SCI Engineered Materials | AngioDynamics vs. The Hanover Insurance | AngioDynamics vs. Doman Building Materials | AngioDynamics vs. Universal Insurance Holdings |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |