Correlation Between St Galler and Advanced Medical
Can any of the company-specific risk be diversified away by investing in both St Galler and Advanced Medical 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 St Galler and Advanced Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between St Galler Kantonalbank and Advanced Medical Solutions, you can compare the effects of market volatilities on St Galler and Advanced Medical 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 St Galler with a short position of Advanced Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of St Galler and Advanced Medical.
Diversification Opportunities for St Galler and Advanced Medical
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between 0QQZ and Advanced is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding St Galler Kantonalbank and Advanced Medical Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Advanced Medical Sol and St Galler 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 St Galler Kantonalbank are associated (or correlated) with Advanced Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Advanced Medical Sol has no effect on the direction of St Galler i.e., St Galler and Advanced Medical go up and down completely randomly.
Pair Corralation between St Galler and Advanced Medical
Assuming the 90 days trading horizon St Galler Kantonalbank is expected to under-perform the Advanced Medical. But the stock apears to be less risky and, when comparing its historical volatility, St Galler Kantonalbank is 3.14 times less risky than Advanced Medical. The stock trades about -0.03 of its potential returns per unit of risk. The Advanced Medical Solutions is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 26,292 in Advanced Medical Solutions on September 3, 2024 and sell it today you would lose (4,992) from holding Advanced Medical Solutions or give up 18.99% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
St Galler Kantonalbank vs. Advanced Medical Solutions
Performance |
| Timeline |
| St Galler Kantonalbank |
| Advanced Medical Sol |
St Galler and Advanced Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with St Galler and Advanced Medical
The main advantage of trading using opposite St Galler and Advanced Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if St Galler position performs unexpectedly, Advanced Medical 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 Advanced Medical will offset losses from the drop in Advanced Medical's long position.| St Galler vs. Iron Mountain | St Galler vs. Team Internet Group | St Galler vs. CVS Health Corp | St Galler vs. MyHealthChecked Plc |
| Advanced Medical vs. National Beverage Corp | Advanced Medical vs. Cincinnati Financial Corp | Advanced Medical vs. Qurate Retail Series | Advanced Medical vs. St Galler Kantonalbank |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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