Correlation Between Aesthetic Medical and Community Health
Can any of the company-specific risk be diversified away by investing in both Aesthetic Medical and Community Health 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 Community Health 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 Community Health Systems, you can compare the effects of market volatilities on Aesthetic Medical and Community Health 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 Community Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aesthetic Medical and Community Health.
Diversification Opportunities for Aesthetic Medical and Community Health
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Aesthetic and Community is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Aesthetic Medical Intl and Community Health Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Community Health Systems 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 Community Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Community Health Systems has no effect on the direction of Aesthetic Medical i.e., Aesthetic Medical and Community Health go up and down completely randomly.
Pair Corralation between Aesthetic Medical and Community Health
If you would invest 32.00 in Aesthetic Medical Intl on September 1, 2024 and sell it today you would earn a total of 0.00 from holding Aesthetic Medical Intl or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Aesthetic Medical Intl vs. Community Health Systems
Performance |
| Timeline |
| Aesthetic Medical Intl |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Community Health Systems |
Aesthetic Medical and Community Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aesthetic Medical and Community Health
The main advantage of trading using opposite Aesthetic Medical and Community Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aesthetic Medical position performs unexpectedly, Community Health 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 Community Health will offset losses from the drop in Community Health's 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 |
| Community Health vs. Universal Health Services | Community Health vs. HCA Holdings | Community Health vs. Surgery Partners | Community Health vs. Acadia Healthcare |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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