Correlation Between AAC TECHNOLOGHLDGADR and Advanced Medical
Can any of the company-specific risk be diversified away by investing in both AAC TECHNOLOGHLDGADR 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 AAC TECHNOLOGHLDGADR and Advanced Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AAC TECHNOLOGHLDGADR and Advanced Medical Solutions, you can compare the effects of market volatilities on AAC TECHNOLOGHLDGADR 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 AAC TECHNOLOGHLDGADR with a short position of Advanced Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of AAC TECHNOLOGHLDGADR and Advanced Medical.
Diversification Opportunities for AAC TECHNOLOGHLDGADR and Advanced Medical
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between AAC and Advanced is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding AAC TECHNOLOGHLDGADR 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 AAC TECHNOLOGHLDGADR 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 AAC TECHNOLOGHLDGADR 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 AAC TECHNOLOGHLDGADR i.e., AAC TECHNOLOGHLDGADR and Advanced Medical go up and down completely randomly.
Pair Corralation between AAC TECHNOLOGHLDGADR and Advanced Medical
Assuming the 90 days horizon AAC TECHNOLOGHLDGADR is expected to generate 1.59 times less return on investment than Advanced Medical. But when comparing it to its historical volatility, AAC TECHNOLOGHLDGADR is 1.08 times less risky than Advanced Medical. It trades about 0.06 of its potential returns per unit of risk. Advanced Medical Solutions is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 238.00 in Advanced Medical Solutions on October 28, 2024 and sell it today you would earn a total of 12.00 from holding Advanced Medical Solutions or generate 5.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AAC TECHNOLOGHLDGADR vs. Advanced Medical Solutions
Performance |
| Timeline |
| AAC TECHNOLOGHLDGADR |
| Advanced Medical Sol |
AAC TECHNOLOGHLDGADR and Advanced Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AAC TECHNOLOGHLDGADR and Advanced Medical
The main advantage of trading using opposite AAC TECHNOLOGHLDGADR and Advanced Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AAC TECHNOLOGHLDGADR 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.| AAC TECHNOLOGHLDGADR vs. ASPEN TECHINC DL | AAC TECHNOLOGHLDGADR vs. SILICON LABORATOR | AAC TECHNOLOGHLDGADR vs. BioNTech SE | AAC TECHNOLOGHLDGADR vs. Firan Technology Group |
| Advanced Medical vs. Apple Inc | Advanced Medical vs. Apple Inc | Advanced Medical vs. Apple Inc | Advanced Medical vs. Apple Inc |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |