Correlation Between Haemonetics and AngioDynamics

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

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

Diversification Opportunities for Haemonetics and AngioDynamics

-0.06

Correlation Coefficient

Haemonetics  AngioDynamics

Good diversification

The 3 months correlation between Haemonetics and AngioDynamics is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Haemonetics and AngioDynamics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AngioDynamics and Haemonetics 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 Haemonetics 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 Haemonetics i.e., Haemonetics and AngioDynamics go up and down completely randomly.

Pair Corralation between Haemonetics and AngioDynamics

Considering the 90-day investment horizon Haemonetics is expected to under-perform the AngioDynamics. But the stock apears to be less risky and, when comparing its historical volatility, Haemonetics is 1.91 times less risky than AngioDynamics. The stock trades about -0.01 of its potential returns per unit of risk. The AngioDynamics is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  964.00  in AngioDynamics on February 10, 2025 and sell it today you would lose (53.00) from holding AngioDynamics or give up 5.5% of portfolio value over 90 days.

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

Haemonetics  vs.  AngioDynamics

Haemonetics

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Haemonetics are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of rather inconsistent basic indicators, Haemonetics exhibited solid returns over the last few months and may actually be approaching a breakup point.

AngioDynamics

Risk-Adjusted Performance

Very Weak

Over the last 90 days AngioDynamics has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's technical and fundamental indicators remain very healthy which may send shares a bit higher in June 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Haemonetics and AngioDynamics

The main advantage of trading using opposite Haemonetics and AngioDynamics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Haemonetics 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.

The idea behind Haemonetics and AngioDynamics 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.