Correlation Between Aesthetic Medical and US Physicalrapy
Can any of the company-specific risk be diversified away by investing in both Aesthetic Medical and US Physicalrapy 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 US Physicalrapy 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 US Physicalrapy, you can compare the effects of market volatilities on Aesthetic Medical and US Physicalrapy 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 US Physicalrapy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aesthetic Medical and US Physicalrapy.
Diversification Opportunities for Aesthetic Medical and US Physicalrapy
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Aesthetic and USPH is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Aesthetic Medical Intl and US Physicalrapy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on US Physicalrapy 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 US Physicalrapy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of US Physicalrapy has no effect on the direction of Aesthetic Medical i.e., Aesthetic Medical and US Physicalrapy go up and down completely randomly.
Pair Corralation between Aesthetic Medical and US Physicalrapy
If you would invest 8,128 in US Physicalrapy on August 29, 2024 and sell it today you would earn a total of 1,732 from holding US Physicalrapy or generate 21.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Aesthetic Medical Intl vs. US Physicalrapy
Performance |
| Timeline |
| Aesthetic Medical Intl |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| US Physicalrapy |
Aesthetic Medical and US Physicalrapy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aesthetic Medical and US Physicalrapy
The main advantage of trading using opposite Aesthetic Medical and US Physicalrapy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aesthetic Medical position performs unexpectedly, US Physicalrapy 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 US Physicalrapy will offset losses from the drop in US Physicalrapy'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 |
| US Physicalrapy vs. Acadia Healthcare | US Physicalrapy vs. Tenet Healthcare | US Physicalrapy vs. HCA Holdings | US Physicalrapy vs. DaVita HealthCare Partners |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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