Correlation Between Affluent Medical and ATEME SA
Can any of the company-specific risk be diversified away by investing in both Affluent Medical and ATEME SA 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 ATEME SA 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 ATEME SA, you can compare the effects of market volatilities on Affluent Medical and ATEME SA 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 ATEME SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Affluent Medical and ATEME SA.
Diversification Opportunities for Affluent Medical and ATEME SA
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Affluent and ATEME is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Affluent Medical SAS and ATEME SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATEME SA 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 ATEME SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATEME SA has no effect on the direction of Affluent Medical i.e., Affluent Medical and ATEME SA go up and down completely randomly.
Pair Corralation between Affluent Medical and ATEME SA
Assuming the 90 days trading horizon Affluent Medical SAS is expected to under-perform the ATEME SA. In addition to that, Affluent Medical is 1.04 times more volatile than ATEME SA. It trades about -0.25 of its total potential returns per unit of risk. ATEME SA is currently generating about 0.12 per unit of volatility. If you would invest 560.00 in ATEME SA on October 17, 2024 and sell it today you would earn a total of 36.00 from holding ATEME SA or generate 6.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Affluent Medical SAS vs. ATEME SA
Performance |
| Timeline |
| Affluent Medical SAS |
| ATEME SA |
Affluent Medical and ATEME SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Affluent Medical and ATEME SA
The main advantage of trading using opposite Affluent Medical and ATEME SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Affluent Medical position performs unexpectedly, ATEME SA 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 ATEME SA will offset losses from the drop in ATEME SA's long position.| Affluent Medical vs. Aramis SAS | Affluent Medical vs. Spartoo SAS | Affluent Medical vs. Hydrogene De France | Affluent Medical vs. Omer Decugis Cie |
| ATEME SA vs. Innelec Multimedia | ATEME SA vs. Eutelsat Communications SA | ATEME SA vs. Affluent Medical SAS | ATEME SA vs. Veolia Environnement VE |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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