Correlation Between Aesthetic Medical and Jack Nathan
Can any of the company-specific risk be diversified away by investing in both Aesthetic Medical and Jack Nathan 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 Jack Nathan 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 Jack Nathan Medical, you can compare the effects of market volatilities on Aesthetic Medical and Jack Nathan 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 Jack Nathan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aesthetic Medical and Jack Nathan.
Diversification Opportunities for Aesthetic Medical and Jack Nathan
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Aesthetic and Jack is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Aesthetic Medical Intl and Jack Nathan Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jack Nathan Medical 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 Jack Nathan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jack Nathan Medical has no effect on the direction of Aesthetic Medical i.e., Aesthetic Medical and Jack Nathan go up and down completely randomly.
Pair Corralation between Aesthetic Medical and Jack Nathan
If you would invest 0.90 in Jack Nathan Medical on November 3, 2024 and sell it today you would earn a total of 2.00 from holding Jack Nathan Medical or generate 222.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Aesthetic Medical Intl vs. Jack Nathan Medical
Performance |
| Timeline |
| Aesthetic Medical Intl |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Jack Nathan Medical |
Aesthetic Medical and Jack Nathan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aesthetic Medical and Jack Nathan
The main advantage of trading using opposite Aesthetic Medical and Jack Nathan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aesthetic Medical position performs unexpectedly, Jack Nathan 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 Jack Nathan will offset losses from the drop in Jack Nathan'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 |
| Jack Nathan vs. Medical Facilities | Jack Nathan vs. Fresenius SE Co | Jack Nathan vs. Ramsay Health Care | Jack Nathan vs. Nova Leap Health |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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