Correlation Between Affluent Medical and Metalliance
Can any of the company-specific risk be diversified away by investing in both Affluent Medical and Metalliance 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 Metalliance 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 Metalliance SA, you can compare the effects of market volatilities on Affluent Medical and Metalliance 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 Metalliance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Affluent Medical and Metalliance.
Diversification Opportunities for Affluent Medical and Metalliance
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Affluent and Metalliance is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Affluent Medical SAS and Metalliance SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Metalliance 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 Metalliance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Metalliance SA has no effect on the direction of Affluent Medical i.e., Affluent Medical and Metalliance go up and down completely randomly.
Pair Corralation between Affluent Medical and Metalliance
Assuming the 90 days trading horizon Affluent Medical SAS is expected to generate 1.33 times more return on investment than Metalliance. However, Affluent Medical is 1.33 times more volatile than Metalliance SA. It trades about 0.01 of its potential returns per unit of risk. Metalliance SA is currently generating about 0.0 per unit of risk. If you would invest 168.00 in Affluent Medical SAS on September 5, 2024 and sell it today you would lose (48.00) from holding Affluent Medical SAS or give up 28.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 97.03% |
| Values | Daily Returns |
Affluent Medical SAS vs. Metalliance SA
Performance |
| Timeline |
| Affluent Medical SAS |
| Metalliance SA |
Affluent Medical and Metalliance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Affluent Medical and Metalliance
The main advantage of trading using opposite Affluent Medical and Metalliance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Affluent Medical position performs unexpectedly, Metalliance 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 Metalliance will offset losses from the drop in Metalliance's long position.| Affluent Medical vs. Biosynex | Affluent Medical vs. Novacyt | Affluent Medical vs. Biophytis SA | Affluent Medical vs. Intrasense |
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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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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