Correlation Between Aesthetic Medical and Lifestance Health
Can any of the company-specific risk be diversified away by investing in both Aesthetic Medical and Lifestance 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 Lifestance 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 Lifestance Health Group, you can compare the effects of market volatilities on Aesthetic Medical and Lifestance 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 Lifestance Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aesthetic Medical and Lifestance Health.
Diversification Opportunities for Aesthetic Medical and Lifestance Health
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Aesthetic and Lifestance is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Aesthetic Medical Intl and Lifestance Health Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lifestance Health 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 Lifestance Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lifestance Health has no effect on the direction of Aesthetic Medical i.e., Aesthetic Medical and Lifestance Health go up and down completely randomly.
Pair Corralation between Aesthetic Medical and Lifestance Health
If you would invest 755.00 in Lifestance Health Group on November 3, 2024 and sell it today you would earn a total of 42.00 from holding Lifestance Health Group or generate 5.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Aesthetic Medical Intl vs. Lifestance Health Group
Performance |
| Timeline |
| Aesthetic Medical Intl |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Lifestance Health |
Aesthetic Medical and Lifestance Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aesthetic Medical and Lifestance Health
The main advantage of trading using opposite Aesthetic Medical and Lifestance Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aesthetic Medical position performs unexpectedly, Lifestance 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 Lifestance Health will offset losses from the drop in Lifestance 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 |
| Lifestance Health vs. Pennant Group | Lifestance Health vs. Encompass Health Corp | Lifestance Health vs. Enhabit | Lifestance Health vs. Concord Medical Services |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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