Correlation Between Affluent Medical and VusionGroup
Can any of the company-specific risk be diversified away by investing in both Affluent Medical and VusionGroup 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 VusionGroup 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 VusionGroup, you can compare the effects of market volatilities on Affluent Medical and VusionGroup 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 VusionGroup. Check out your portfolio center. Please also check ongoing floating volatility patterns of Affluent Medical and VusionGroup.
Diversification Opportunities for Affluent Medical and VusionGroup
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Affluent and VusionGroup is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Affluent Medical SAS and VusionGroup in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VusionGroup 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 VusionGroup. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VusionGroup has no effect on the direction of Affluent Medical i.e., Affluent Medical and VusionGroup go up and down completely randomly.
Pair Corralation between Affluent Medical and VusionGroup
Assuming the 90 days trading horizon Affluent Medical SAS is expected to under-perform the VusionGroup. In addition to that, Affluent Medical is 1.81 times more volatile than VusionGroup. It trades about -0.22 of its total potential returns per unit of risk. VusionGroup is currently generating about -0.04 per unit of volatility. If you would invest 14,440 in VusionGroup on September 1, 2024 and sell it today you would lose (280.00) from holding VusionGroup or give up 1.94% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Affluent Medical SAS vs. VusionGroup
Performance |
| Timeline |
| Affluent Medical SAS |
| VusionGroup |
Affluent Medical and VusionGroup Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Affluent Medical and VusionGroup
The main advantage of trading using opposite Affluent Medical and VusionGroup positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Affluent Medical position performs unexpectedly, VusionGroup 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 VusionGroup will offset losses from the drop in VusionGroup'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 |
| VusionGroup vs. Gaztransport Technigaz SAS | VusionGroup vs. ZCCM Investments Holdings | VusionGroup vs. Affluent Medical SAS | VusionGroup vs. Union Technologies Informatique |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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