Correlation Between Afine Investments and Ascendis Health
Can any of the company-specific risk be diversified away by investing in both Afine Investments and Ascendis 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 Afine Investments and Ascendis Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Afine Investments and Ascendis Health, you can compare the effects of market volatilities on Afine Investments and Ascendis 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 Afine Investments with a short position of Ascendis Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Afine Investments and Ascendis Health.
Diversification Opportunities for Afine Investments and Ascendis Health
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Afine and Ascendis is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Afine Investments and Ascendis Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ascendis Health and Afine Investments 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 Afine Investments are associated (or correlated) with Ascendis Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ascendis Health has no effect on the direction of Afine Investments i.e., Afine Investments and Ascendis Health go up and down completely randomly.
Pair Corralation between Afine Investments and Ascendis Health
If you would invest 40,000 in Afine Investments on August 24, 2024 and sell it today you would earn a total of 0.00 from holding Afine Investments or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Afine Investments vs. Ascendis Health
Performance |
| Timeline |
| Afine Investments |
| Ascendis Health |
Afine Investments and Ascendis Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Afine Investments and Ascendis Health
The main advantage of trading using opposite Afine Investments and Ascendis Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Afine Investments position performs unexpectedly, Ascendis 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 Ascendis Health will offset losses from the drop in Ascendis Health's long position.| Afine Investments vs. Schroder European Real | Afine Investments vs. Centaur Bci Balanced | Afine Investments vs. Sabvest Capital | Afine Investments vs. Growthpoint Properties |
| Ascendis Health vs. Aspen Pharmacare Holdings | Ascendis Health vs. Centaur Bci Balanced | Ascendis Health vs. Sabvest Capital | Ascendis Health vs. Growthpoint Properties |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |