Correlation Between Aesthetic Medical and Nova Leap
Can any of the company-specific risk be diversified away by investing in both Aesthetic Medical and Nova Leap 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 Nova Leap 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 Nova Leap Health, you can compare the effects of market volatilities on Aesthetic Medical and Nova Leap 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 Nova Leap. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aesthetic Medical and Nova Leap.
Diversification Opportunities for Aesthetic Medical and Nova Leap
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Aesthetic and Nova is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Aesthetic Medical Intl and Nova Leap Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nova Leap 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 Nova Leap. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nova Leap Health has no effect on the direction of Aesthetic Medical i.e., Aesthetic Medical and Nova Leap go up and down completely randomly.
Pair Corralation between Aesthetic Medical and Nova Leap
If you would invest 32.00 in Aesthetic Medical Intl on October 24, 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 Together |
| Strength | Insignificant |
| Accuracy | 5.26% |
| Values | Daily Returns |
Aesthetic Medical Intl vs. Nova Leap Health
Performance |
| Timeline |
| Aesthetic Medical Intl |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Nova Leap Health |
Aesthetic Medical and Nova Leap Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aesthetic Medical and Nova Leap
The main advantage of trading using opposite Aesthetic Medical and Nova Leap positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aesthetic Medical position performs unexpectedly, Nova Leap 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 Nova Leap will offset losses from the drop in Nova Leap'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 |
| Nova Leap vs. Medical Facilities | Nova Leap vs. Sienna Senior Living | Nova Leap vs. Regional Health Properties | Nova Leap vs. WashTec AG |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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