Correlation Between Advanced Medical and SDAX Index
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By analyzing existing cross correlation between Advanced Medical Solutions and SDAX Index, you can compare the effects of market volatilities on Advanced Medical and SDAX Index 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 Advanced Medical with a short position of SDAX Index. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advanced Medical and SDAX Index.
Diversification Opportunities for Advanced Medical and SDAX Index
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Advanced and SDAX is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Advanced Medical Solutions and SDAX Index in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SDAX Index and Advanced 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 Advanced Medical Solutions are associated (or correlated) with SDAX Index. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SDAX Index has no effect on the direction of Advanced Medical i.e., Advanced Medical and SDAX Index go up and down completely randomly.
Pair Corralation between Advanced Medical and SDAX Index
Assuming the 90 days trading horizon Advanced Medical Solutions is expected to under-perform the SDAX Index. In addition to that, Advanced Medical is 3.77 times more volatile than SDAX Index. It trades about -0.09 of its total potential returns per unit of risk. SDAX Index is currently generating about -0.03 per unit of volatility. If you would invest 1,407,955 in SDAX Index on October 10, 2024 and sell it today you would lose (7,119) from holding SDAX Index or give up 0.51% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Advanced Medical Solutions vs. SDAX Index
Performance |
| Timeline |
Advanced Medical and SDAX Index Volatility Contrast
Predicted Return Density |
| Returns |
Advanced Medical Solutions
Pair trading matchups for Advanced Medical
SDAX Index
Pair trading matchups for SDAX Index
Pair Trading with Advanced Medical and SDAX Index
The main advantage of trading using opposite Advanced Medical and SDAX Index positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advanced Medical position performs unexpectedly, SDAX Index 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 SDAX Index will offset losses from the drop in SDAX Index's long position.| Advanced Medical vs. HEALTHSTREAM | Advanced Medical vs. NIGHTINGALE HEALTH EO | Advanced Medical vs. CARDINAL HEALTH | Advanced Medical vs. Perdoceo Education |
| SDAX Index vs. Renesas Electronics | SDAX Index vs. UNIVMUSIC GRPADR050 | SDAX Index vs. Advanced Medical Solutions | SDAX Index vs. Tencent Music Entertainment |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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