Correlation Between Piscines Desjoyaux and Affluent Medical
Can any of the company-specific risk be diversified away by investing in both Piscines Desjoyaux and Affluent Medical 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 Piscines Desjoyaux and Affluent Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Piscines Desjoyaux SA and Affluent Medical SAS, you can compare the effects of market volatilities on Piscines Desjoyaux and Affluent Medical 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 Piscines Desjoyaux with a short position of Affluent Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Piscines Desjoyaux and Affluent Medical.
Diversification Opportunities for Piscines Desjoyaux and Affluent Medical
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Piscines and Affluent is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Piscines Desjoyaux SA and Affluent Medical SAS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Affluent Medical SAS and Piscines Desjoyaux 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 Piscines Desjoyaux SA are associated (or correlated) with Affluent Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Affluent Medical SAS has no effect on the direction of Piscines Desjoyaux i.e., Piscines Desjoyaux and Affluent Medical go up and down completely randomly.
Pair Corralation between Piscines Desjoyaux and Affluent Medical
Assuming the 90 days trading horizon Piscines Desjoyaux is expected to generate 1.55 times less return on investment than Affluent Medical. But when comparing it to its historical volatility, Piscines Desjoyaux SA is 2.88 times less risky than Affluent Medical. It trades about 0.03 of its potential returns per unit of risk. Affluent Medical SAS is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 159.00 in Affluent Medical SAS on November 2, 2024 and sell it today you would lose (21.00) from holding Affluent Medical SAS or give up 13.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Piscines Desjoyaux SA vs. Affluent Medical SAS
Performance |
| Timeline |
| Piscines Desjoyaux |
| Affluent Medical SAS |
Piscines Desjoyaux and Affluent Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Piscines Desjoyaux and Affluent Medical
The main advantage of trading using opposite Piscines Desjoyaux and Affluent Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Piscines Desjoyaux position performs unexpectedly, Affluent Medical 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 Affluent Medical will offset losses from the drop in Affluent Medical's long position.| Piscines Desjoyaux vs. SA Catana Group | Piscines Desjoyaux vs. Thermador Groupe SA | Piscines Desjoyaux vs. Trigano SA | Piscines Desjoyaux vs. Groupe Guillin SA |
| Affluent Medical vs. Aramis SAS | Affluent Medical vs. Spartoo SAS | Affluent Medical vs. Hydrogene De France | Affluent Medical vs. Omer Decugis Cie |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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