Correlation Between Aesthetic Medical and Amedisys
Can any of the company-specific risk be diversified away by investing in both Aesthetic Medical and Amedisys 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 Aesthetic Medical and Amedisys into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aesthetic Medical Intl and Amedisys, you can compare the effects of market volatilities on Aesthetic Medical and Amedisys 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 Aesthetic Medical with a short position of Amedisys. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aesthetic Medical and Amedisys.
Diversification Opportunities for Aesthetic Medical and Amedisys
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Aesthetic and Amedisys is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Aesthetic Medical Intl and Amedisys in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amedisys and Aesthetic 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 Aesthetic Medical Intl are associated (or correlated) with Amedisys. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amedisys has no effect on the direction of Aesthetic Medical i.e., Aesthetic Medical and Amedisys go up and down completely randomly.
Pair Corralation between Aesthetic Medical and Amedisys
Considering the 90-day investment horizon Aesthetic Medical Intl is expected to generate 8.14 times more return on investment than Amedisys. However, Aesthetic Medical is 8.14 times more volatile than Amedisys. It trades about 0.02 of its potential returns per unit of risk. Amedisys is currently generating about 0.01 per unit of risk. If you would invest 136.00 in Aesthetic Medical Intl on August 24, 2024 and sell it today you would lose (104.00) from holding Aesthetic Medical Intl or give up 76.47% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 82.66% |
| Values | Daily Returns |
Aesthetic Medical Intl vs. Amedisys
Performance |
| Timeline |
| Aesthetic Medical Intl |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Amedisys |
Aesthetic Medical and Amedisys Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aesthetic Medical and Amedisys
The main advantage of trading using opposite Aesthetic Medical and Amedisys positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aesthetic Medical position performs unexpectedly, Amedisys 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 Amedisys will offset losses from the drop in Amedisys' long position.| Aesthetic Medical vs. Jack Nathan Medical | Aesthetic Medical vs. Medical Facilities | Aesthetic Medical vs. Fresenius SE Co | Aesthetic Medical vs. Ramsay Health Care |
| Amedisys vs. Addus HomeCare | Amedisys vs. Morningstar Unconstrained Allocation | Amedisys vs. SEI Investments | Amedisys vs. Goosehead Insurance |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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