Correlation Between Sogeclair and Affluent Medical
Can any of the company-specific risk be diversified away by investing in both Sogeclair 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 Sogeclair and Affluent Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sogeclair SA and Affluent Medical SAS, you can compare the effects of market volatilities on Sogeclair 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 Sogeclair with a short position of Affluent Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sogeclair and Affluent Medical.
Diversification Opportunities for Sogeclair and Affluent Medical
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Sogeclair and Affluent is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Sogeclair 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 Sogeclair 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 Sogeclair 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 Sogeclair i.e., Sogeclair and Affluent Medical go up and down completely randomly.
Pair Corralation between Sogeclair and Affluent Medical
Assuming the 90 days trading horizon Sogeclair SA is expected to generate 0.69 times more return on investment than Affluent Medical. However, Sogeclair SA is 1.45 times less risky than Affluent Medical. It trades about -0.02 of its potential returns per unit of risk. Affluent Medical SAS is currently generating about -0.03 per unit of risk. If you would invest 2,300 in Sogeclair SA on November 28, 2024 and sell it today you would lose (290.00) from holding Sogeclair SA or give up 12.61% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sogeclair SA vs. Affluent Medical SAS
Performance |
| Timeline |
| Sogeclair SA |
| Affluent Medical SAS |
Sogeclair and Affluent Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sogeclair and Affluent Medical
The main advantage of trading using opposite Sogeclair and Affluent Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sogeclair 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.| Sogeclair vs. Aures Technologies SA | Sogeclair vs. Broadpeak SA | Sogeclair vs. Impulse Fitness Solutions | Sogeclair vs. Plant Advanced Technologies |
| 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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