Correlation Between AFFLUENT MEDICAL and Sumitomo Rubber
Can any of the company-specific risk be diversified away by investing in both AFFLUENT MEDICAL and Sumitomo Rubber 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 AFFLUENT MEDICAL and Sumitomo Rubber into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AFFLUENT MEDICAL SAS and Sumitomo Rubber Industries, you can compare the effects of market volatilities on AFFLUENT MEDICAL and Sumitomo Rubber 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 AFFLUENT MEDICAL with a short position of Sumitomo Rubber. Check out your portfolio center. Please also check ongoing floating volatility patterns of AFFLUENT MEDICAL and Sumitomo Rubber.
Diversification Opportunities for AFFLUENT MEDICAL and Sumitomo Rubber
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AFFLUENT and Sumitomo is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding AFFLUENT MEDICAL SAS and Sumitomo Rubber Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sumitomo Rubber Indu and AFFLUENT 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 AFFLUENT MEDICAL SAS are associated (or correlated) with Sumitomo Rubber. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sumitomo Rubber Indu has no effect on the direction of AFFLUENT MEDICAL i.e., AFFLUENT MEDICAL and Sumitomo Rubber go up and down completely randomly.
Pair Corralation between AFFLUENT MEDICAL and Sumitomo Rubber
Assuming the 90 days horizon AFFLUENT MEDICAL SAS is expected to under-perform the Sumitomo Rubber. In addition to that, AFFLUENT MEDICAL is 2.76 times more volatile than Sumitomo Rubber Industries. It trades about -0.03 of its total potential returns per unit of risk. Sumitomo Rubber Industries is currently generating about 0.22 per unit of volatility. If you would invest 1,050 in Sumitomo Rubber Industries on November 6, 2024 and sell it today you would earn a total of 60.00 from holding Sumitomo Rubber Industries or generate 5.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AFFLUENT MEDICAL SAS vs. Sumitomo Rubber Industries
Performance |
| Timeline |
| AFFLUENT MEDICAL SAS |
| Sumitomo Rubber Indu |
AFFLUENT MEDICAL and Sumitomo Rubber Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AFFLUENT MEDICAL and Sumitomo Rubber
The main advantage of trading using opposite AFFLUENT MEDICAL and Sumitomo Rubber positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AFFLUENT MEDICAL position performs unexpectedly, Sumitomo Rubber 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 Sumitomo Rubber will offset losses from the drop in Sumitomo Rubber's long position.| AFFLUENT MEDICAL vs. Yuexiu Transport Infrastructure | AFFLUENT MEDICAL vs. Fukuyama Transporting Co | AFFLUENT MEDICAL vs. Air Transport Services | AFFLUENT MEDICAL vs. SOEDER SPORTFISKE AB |
| Sumitomo Rubber vs. Semiconductor Manufacturing International | Sumitomo Rubber vs. De Grey Mining | Sumitomo Rubber vs. Nordic Semiconductor ASA | Sumitomo Rubber vs. STGEORGE MINING LTD |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |