Correlation Between Affluent Medical and Diagnostic Medical
Can any of the company-specific risk be diversified away by investing in both Affluent Medical and Diagnostic 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 Affluent Medical and Diagnostic Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Affluent Medical SAS and Diagnostic Medical Systems, you can compare the effects of market volatilities on Affluent Medical and Diagnostic 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 Affluent Medical with a short position of Diagnostic Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Affluent Medical and Diagnostic Medical.
Diversification Opportunities for Affluent Medical and Diagnostic Medical
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Affluent and Diagnostic is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Affluent Medical SAS and Diagnostic Medical Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Diagnostic Medical and Affluent Medical 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 Affluent Medical SAS are associated (or correlated) with Diagnostic Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Diagnostic Medical has no effect on the direction of Affluent Medical i.e., Affluent Medical and Diagnostic Medical go up and down completely randomly.
Pair Corralation between Affluent Medical and Diagnostic Medical
Assuming the 90 days trading horizon Affluent Medical SAS is expected to under-perform the Diagnostic Medical. In addition to that, Affluent Medical is 1.0 times more volatile than Diagnostic Medical Systems. It trades about -0.05 of its total potential returns per unit of risk. Diagnostic Medical Systems is currently generating about 0.11 per unit of volatility. If you would invest 80.00 in Diagnostic Medical Systems on November 18, 2024 and sell it today you would earn a total of 21.00 from holding Diagnostic Medical Systems or generate 26.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Affluent Medical SAS vs. Diagnostic Medical Systems
Performance |
| Timeline |
| Affluent Medical SAS |
| Diagnostic Medical |
Affluent Medical and Diagnostic Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Affluent Medical and Diagnostic Medical
The main advantage of trading using opposite Affluent Medical and Diagnostic Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Affluent Medical position performs unexpectedly, Diagnostic 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 Diagnostic Medical will offset losses from the drop in Diagnostic Medical's long position.| Affluent Medical vs. Aramis SAS | Affluent Medical vs. Spartoo SAS | Affluent Medical vs. Hydrogene De France |
| Diagnostic Medical vs. Sidetrade | Diagnostic Medical vs. Novatech Industries SA | Diagnostic Medical vs. Hitechpros | Diagnostic Medical vs. FNP Technologies SA |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |