Correlation Between Aedifica and Primary Health
Can any of the company-specific risk be diversified away by investing in both Aedifica and Primary Health 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 Aedifica and Primary Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aedifica SA and Primary Health Properties, you can compare the effects of market volatilities on Aedifica and Primary Health 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 Aedifica with a short position of Primary Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aedifica and Primary Health.
Diversification Opportunities for Aedifica and Primary Health
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Aedifica and Primary is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Aedifica SA and Primary Health Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Primary Health Properties and Aedifica 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 Aedifica SA are associated (or correlated) with Primary Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Primary Health Properties has no effect on the direction of Aedifica i.e., Aedifica and Primary Health go up and down completely randomly.
Pair Corralation between Aedifica and Primary Health
Assuming the 90 days horizon Aedifica SA is expected to generate 1.17 times more return on investment than Primary Health. However, Aedifica is 1.17 times more volatile than Primary Health Properties. It trades about 0.13 of its potential returns per unit of risk. Primary Health Properties is currently generating about 0.15 per unit of risk. If you would invest 7,450 in Aedifica SA on November 12, 2025 and sell it today you would earn a total of 1,328 from holding Aedifica SA or generate 17.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 96.83% |
| Values | Daily Returns |
Aedifica SA vs. Primary Health Properties
Performance |
| Timeline |
| Aedifica SA |
| Primary Health Properties |
Aedifica and Primary Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aedifica and Primary Health
The main advantage of trading using opposite Aedifica and Primary Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aedifica position performs unexpectedly, Primary Health 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 Primary Health will offset losses from the drop in Primary Health's long position.| Aedifica vs. United Industrial | Aedifica vs. Unite Group PLC | Aedifica vs. Inmobiliaria Colonial SOCIMI | Aedifica vs. Riocan REIT |
| Primary Health vs. Parkway Life Real | Primary Health vs. Ingenia Communities Group | Primary Health vs. Xior Student Housing | Primary Health vs. Fibra Terrafina |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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