Correlation Between AEON STORES and MEDICAL FACILITIES
Can any of the company-specific risk be diversified away by investing in both AEON STORES and MEDICAL FACILITIES 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 AEON STORES and MEDICAL FACILITIES into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AEON STORES and MEDICAL FACILITIES NEW, you can compare the effects of market volatilities on AEON STORES and MEDICAL FACILITIES 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 AEON STORES with a short position of MEDICAL FACILITIES. Check out your portfolio center. Please also check ongoing floating volatility patterns of AEON STORES and MEDICAL FACILITIES.
Diversification Opportunities for AEON STORES and MEDICAL FACILITIES
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AEON and MEDICAL is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding AEON STORES and MEDICAL FACILITIES NEW in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MEDICAL FACILITIES NEW and AEON STORES 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 AEON STORES are associated (or correlated) with MEDICAL FACILITIES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MEDICAL FACILITIES NEW has no effect on the direction of AEON STORES i.e., AEON STORES and MEDICAL FACILITIES go up and down completely randomly.
Pair Corralation between AEON STORES and MEDICAL FACILITIES
Assuming the 90 days trading horizon AEON STORES is expected to under-perform the MEDICAL FACILITIES. In addition to that, AEON STORES is 1.18 times more volatile than MEDICAL FACILITIES NEW. It trades about -0.01 of its total potential returns per unit of risk. MEDICAL FACILITIES NEW is currently generating about 0.07 per unit of volatility. If you would invest 508.00 in MEDICAL FACILITIES NEW on October 31, 2024 and sell it today you would earn a total of 572.00 from holding MEDICAL FACILITIES NEW or generate 112.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AEON STORES vs. MEDICAL FACILITIES NEW
Performance |
| Timeline |
| AEON STORES |
| MEDICAL FACILITIES NEW |
AEON STORES and MEDICAL FACILITIES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AEON STORES and MEDICAL FACILITIES
The main advantage of trading using opposite AEON STORES and MEDICAL FACILITIES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AEON STORES position performs unexpectedly, MEDICAL FACILITIES 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 MEDICAL FACILITIES will offset losses from the drop in MEDICAL FACILITIES's long position.| AEON STORES vs. INTERCONT HOTELS | AEON STORES vs. STRAYER EDUCATION | AEON STORES vs. Adtalem Global Education | AEON STORES vs. Park Hotels Resorts |
| MEDICAL FACILITIES vs. Cal Maine Foods | MEDICAL FACILITIES vs. H2O Retailing | MEDICAL FACILITIES vs. Tradegate AG Wertpapierhandelsbank | MEDICAL FACILITIES vs. TRADEDOUBLER AB SK |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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