Correlation Between Affluent Medical and Onlineformapro
Can any of the company-specific risk be diversified away by investing in both Affluent Medical and Onlineformapro 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 Onlineformapro 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 Onlineformapro SA, you can compare the effects of market volatilities on Affluent Medical and Onlineformapro 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 Onlineformapro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Affluent Medical and Onlineformapro.
Diversification Opportunities for Affluent Medical and Onlineformapro
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Affluent and Onlineformapro is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Affluent Medical SAS and Onlineformapro SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Onlineformapro 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 Onlineformapro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Onlineformapro SA has no effect on the direction of Affluent Medical i.e., Affluent Medical and Onlineformapro go up and down completely randomly.
Pair Corralation between Affluent Medical and Onlineformapro
Assuming the 90 days trading horizon Affluent Medical is expected to generate 5.83 times less return on investment than Onlineformapro. But when comparing it to its historical volatility, Affluent Medical SAS is 1.33 times less risky than Onlineformapro. It trades about 0.01 of its potential returns per unit of risk. Onlineformapro SA is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 112.00 in Onlineformapro SA on August 30, 2024 and sell it today you would earn a total of 148.00 from holding Onlineformapro SA or generate 132.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 82.54% |
| Values | Daily Returns |
Affluent Medical SAS vs. Onlineformapro SA
Performance |
| Timeline |
| Affluent Medical SAS |
| Onlineformapro SA |
Affluent Medical and Onlineformapro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Affluent Medical and Onlineformapro
The main advantage of trading using opposite Affluent Medical and Onlineformapro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Affluent Medical position performs unexpectedly, Onlineformapro 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 Onlineformapro will offset losses from the drop in Onlineformapro's long position.| Affluent Medical vs. Hydrogene De France | Affluent Medical vs. Manitou BF SA | Affluent Medical vs. Ossiam Minimum Variance | Affluent Medical vs. Ekinops SA |
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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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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