Correlation Between Ackerstein and Seach Medical
Can any of the company-specific risk be diversified away by investing in both Ackerstein and Seach 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 Ackerstein and Seach Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ackerstein Group and Seach Medical Group, you can compare the effects of market volatilities on Ackerstein and Seach 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 Ackerstein with a short position of Seach Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ackerstein and Seach Medical.
Diversification Opportunities for Ackerstein and Seach Medical
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Ackerstein and Seach is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Ackerstein Group and Seach Medical Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Seach Medical Group and Ackerstein 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 Ackerstein Group are associated (or correlated) with Seach Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Seach Medical Group has no effect on the direction of Ackerstein i.e., Ackerstein and Seach Medical go up and down completely randomly.
Pair Corralation between Ackerstein and Seach Medical
Assuming the 90 days trading horizon Ackerstein Group is expected to generate 1.44 times more return on investment than Seach Medical. However, Ackerstein is 1.44 times more volatile than Seach Medical Group. It trades about 0.48 of its potential returns per unit of risk. Seach Medical Group is currently generating about 0.31 per unit of risk. If you would invest 64,320 in Ackerstein Group on September 13, 2024 and sell it today you would earn a total of 19,260 from holding Ackerstein Group or generate 29.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ackerstein Group vs. Seach Medical Group
Performance |
| Timeline |
| Ackerstein Group |
| Seach Medical Group |
Ackerstein and Seach Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ackerstein and Seach Medical
The main advantage of trading using opposite Ackerstein and Seach Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ackerstein position performs unexpectedly, Seach 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 Seach Medical will offset losses from the drop in Seach Medical's long position.| Ackerstein vs. Silver Castle Holdings | Ackerstein vs. Millennium Food Tech LP | Ackerstein vs. Elbit Medical Technologies | Ackerstein vs. Altshuler Shaham Financial |
| Seach Medical vs. Delek Automotive Systems | Seach Medical vs. Alony Hetz Properties | Seach Medical vs. Enlight Renewable Energy | Seach Medical vs. Energix Renewable Energies |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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