Correlation Between CryoCell International and Airsculpt Technologies
Can any of the company-specific risk be diversified away by investing in both CryoCell International and Airsculpt Technologies 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 CryoCell International and Airsculpt Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CryoCell International and Airsculpt Technologies, you can compare the effects of market volatilities on CryoCell International and Airsculpt Technologies 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 CryoCell International with a short position of Airsculpt Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of CryoCell International and Airsculpt Technologies.
Diversification Opportunities for CryoCell International and Airsculpt Technologies
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between CryoCell and Airsculpt is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding CryoCell International and Airsculpt Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Airsculpt Technologies and CryoCell International 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 CryoCell International are associated (or correlated) with Airsculpt Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Airsculpt Technologies has no effect on the direction of CryoCell International i.e., CryoCell International and Airsculpt Technologies go up and down completely randomly.
Pair Corralation between CryoCell International and Airsculpt Technologies
Given the investment horizon of 90 days CryoCell International is expected to under-perform the Airsculpt Technologies. But the stock apears to be less risky and, when comparing its historical volatility, CryoCell International is 2.03 times less risky than Airsculpt Technologies. The stock trades about -0.07 of its potential returns per unit of risk. The Airsculpt Technologies is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 541.00 in Airsculpt Technologies on October 22, 2024 and sell it today you would lose (8.00) from holding Airsculpt Technologies or give up 1.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CryoCell International vs. Airsculpt Technologies
Performance |
| Timeline |
| CryoCell International |
| Airsculpt Technologies |
CryoCell International and Airsculpt Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CryoCell International and Airsculpt Technologies
The main advantage of trading using opposite CryoCell International and Airsculpt Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CryoCell International position performs unexpectedly, Airsculpt Technologies 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 Airsculpt Technologies will offset losses from the drop in Airsculpt Technologies' long position.| CryoCell International vs. National HealthCare | CryoCell International vs. InnovAge Holding Corp | CryoCell International vs. Pennant Group | CryoCell International vs. Encompass Health Corp |
| Airsculpt Technologies vs. Acadia Healthcare | Airsculpt Technologies vs. Pennant Group | Airsculpt Technologies vs. Amedisys | Airsculpt Technologies vs. The Ensign Group |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |