Correlation Between Aesthetic Medical and Regional Health
Can any of the company-specific risk be diversified away by investing in both Aesthetic Medical and Regional 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 Regional 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 Regional Health Properties, you can compare the effects of market volatilities on Aesthetic Medical and Regional 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 Regional Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aesthetic Medical and Regional Health.
Diversification Opportunities for Aesthetic Medical and Regional Health
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Aesthetic and Regional is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Aesthetic Medical Intl and Regional Health Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Regional Health Prop 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 Regional Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Regional Health Prop has no effect on the direction of Aesthetic Medical i.e., Aesthetic Medical and Regional Health go up and down completely randomly.
Pair Corralation between Aesthetic Medical and Regional Health
Considering the 90-day investment horizon Aesthetic Medical Intl is expected to generate 4.86 times more return on investment than Regional Health. However, Aesthetic Medical is 4.86 times more volatile than Regional Health Properties. It trades about 0.21 of its potential returns per unit of risk. Regional Health Properties is currently generating about -0.04 per unit of risk. If you would invest 13.00 in Aesthetic Medical Intl on September 3, 2024 and sell it today you would earn a total of 19.00 from holding Aesthetic Medical Intl or generate 146.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 27.42% |
| Values | Daily Returns |
Aesthetic Medical Intl vs. Regional Health Properties
Performance |
| Timeline |
| Aesthetic Medical Intl |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Regional Health Prop |
Aesthetic Medical and Regional Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aesthetic Medical and Regional Health
The main advantage of trading using opposite Aesthetic Medical and Regional Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aesthetic Medical position performs unexpectedly, Regional 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 Regional Health will offset losses from the drop in Regional 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 |
| Regional Health vs. Ramsay Health Care | Regional Health vs. Jack Nathan Medical | Regional Health vs. Nova Leap Health | Regional Health vs. Fresenius SE Co |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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