Correlation Between AM EAGLE and MEDICAL FACILITIES
Can any of the company-specific risk be diversified away by investing in both AM EAGLE and MEDICAL FACILITIES 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 AM EAGLE and MEDICAL FACILITIES into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AM EAGLE OUTFITTERS and MEDICAL FACILITIES NEW, you can compare the effects of market volatilities on AM EAGLE and MEDICAL FACILITIES 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 AM EAGLE with a short position of MEDICAL FACILITIES. Check out your portfolio center. Please also check ongoing floating volatility patterns of AM EAGLE and MEDICAL FACILITIES.
Diversification Opportunities for AM EAGLE and MEDICAL FACILITIES
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AFG and MEDICAL is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding AM EAGLE OUTFITTERS and MEDICAL FACILITIES NEW in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MEDICAL FACILITIES NEW and AM EAGLE 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 AM EAGLE OUTFITTERS are associated (or correlated) with MEDICAL FACILITIES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MEDICAL FACILITIES NEW has no effect on the direction of AM EAGLE i.e., AM EAGLE and MEDICAL FACILITIES go up and down completely randomly.
Pair Corralation between AM EAGLE and MEDICAL FACILITIES
Assuming the 90 days trading horizon AM EAGLE is expected to generate 47.16 times less return on investment than MEDICAL FACILITIES. In addition to that, AM EAGLE is 1.13 times more volatile than MEDICAL FACILITIES NEW. It trades about 0.0 of its total potential returns per unit of risk. MEDICAL FACILITIES NEW is currently generating about 0.22 per unit of volatility. If you would invest 945.00 in MEDICAL FACILITIES NEW on September 1, 2024 and sell it today you would earn a total of 115.00 from holding MEDICAL FACILITIES NEW or generate 12.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AM EAGLE OUTFITTERS vs. MEDICAL FACILITIES NEW
Performance |
| Timeline |
| AM EAGLE OUTFITTERS |
| MEDICAL FACILITIES NEW |
AM EAGLE and MEDICAL FACILITIES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AM EAGLE and MEDICAL FACILITIES
The main advantage of trading using opposite AM EAGLE and MEDICAL FACILITIES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AM EAGLE position performs unexpectedly, MEDICAL FACILITIES 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 MEDICAL FACILITIES will offset losses from the drop in MEDICAL FACILITIES's long position.| AM EAGLE vs. AVITA Medical | AM EAGLE vs. EAT WELL INVESTMENT | AM EAGLE vs. Diamyd Medical AB | AM EAGLE vs. CompuGroup Medical SE |
| MEDICAL FACILITIES vs. YATRA ONLINE DL 0001 | MEDICAL FACILITIES vs. Carsales | MEDICAL FACILITIES vs. Science Applications International | MEDICAL FACILITIES vs. Data3 Limited |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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