Correlation Between Affluent Medical and Guerbet S
Can any of the company-specific risk be diversified away by investing in both Affluent Medical and Guerbet S 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 Guerbet S 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 Guerbet S A, you can compare the effects of market volatilities on Affluent Medical and Guerbet S 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 Guerbet S. Check out your portfolio center. Please also check ongoing floating volatility patterns of Affluent Medical and Guerbet S.
Diversification Opportunities for Affluent Medical and Guerbet S
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Affluent and Guerbet is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Affluent Medical SAS and Guerbet S A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guerbet S A 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 Guerbet S. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guerbet S A has no effect on the direction of Affluent Medical i.e., Affluent Medical and Guerbet S go up and down completely randomly.
Pair Corralation between Affluent Medical and Guerbet S
Assuming the 90 days trading horizon Affluent Medical SAS is expected to under-perform the Guerbet S. In addition to that, Affluent Medical is 1.55 times more volatile than Guerbet S A. It trades about -0.1 of its total potential returns per unit of risk. Guerbet S A is currently generating about -0.07 per unit of volatility. If you would invest 2,810 in Guerbet S A on November 5, 2024 and sell it today you would lose (75.00) from holding Guerbet S A or give up 2.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Affluent Medical SAS vs. Guerbet S A
Performance |
| Timeline |
| Affluent Medical SAS |
| Guerbet S A |
Affluent Medical and Guerbet S Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Affluent Medical and Guerbet S
The main advantage of trading using opposite Affluent Medical and Guerbet S positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Affluent Medical position performs unexpectedly, Guerbet S 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 Guerbet S will offset losses from the drop in Guerbet S'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 |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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