Correlation Between Brookdale Senior and Aesthetic Medical
Can any of the company-specific risk be diversified away by investing in both Brookdale Senior and Aesthetic 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 Brookdale Senior and Aesthetic Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Brookdale Senior Living and Aesthetic Medical Intl, you can compare the effects of market volatilities on Brookdale Senior and Aesthetic 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 Brookdale Senior with a short position of Aesthetic Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brookdale Senior and Aesthetic Medical.
Diversification Opportunities for Brookdale Senior and Aesthetic Medical
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Brookdale and Aesthetic is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Brookdale Senior Living and Aesthetic Medical Intl in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aesthetic Medical Intl and Brookdale Senior 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 Brookdale Senior Living are associated (or correlated) with Aesthetic Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aesthetic Medical Intl has no effect on the direction of Brookdale Senior i.e., Brookdale Senior and Aesthetic Medical go up and down completely randomly.
Pair Corralation between Brookdale Senior and Aesthetic Medical
If you would invest 32.00 in Aesthetic Medical Intl on October 22, 2024 and sell it today you would earn a total of 0.00 from holding Aesthetic Medical Intl or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 5.56% |
| Values | Daily Returns |
Brookdale Senior Living vs. Aesthetic Medical Intl
Performance |
| Timeline |
| Brookdale Senior Living |
| Aesthetic Medical Intl |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Brookdale Senior and Aesthetic Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Brookdale Senior and Aesthetic Medical
The main advantage of trading using opposite Brookdale Senior and Aesthetic Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brookdale Senior position performs unexpectedly, Aesthetic 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 Aesthetic Medical will offset losses from the drop in Aesthetic Medical's long position.| Brookdale Senior vs. The Ensign Group | Brookdale Senior vs. Community Health Systems | Brookdale Senior vs. National HealthCare | Brookdale Senior vs. Mednax Inc |
| Aesthetic Medical vs. Jack Nathan Medical | Aesthetic Medical vs. Medical Facilities | Aesthetic Medical vs. Fresenius SE Co | Aesthetic Medical vs. Ramsay Health Care |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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