Correlation Between Union Technologies and Affluent Medical
Can any of the company-specific risk be diversified away by investing in both Union Technologies and Affluent 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 Union Technologies and Affluent Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Union Technologies Informatique and Affluent Medical SAS, you can compare the effects of market volatilities on Union Technologies and Affluent 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 Union Technologies with a short position of Affluent Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Union Technologies and Affluent Medical.
Diversification Opportunities for Union Technologies and Affluent Medical
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Union and Affluent is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Union Technologies Informatiqu and Affluent Medical SAS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Affluent Medical SAS and Union Technologies 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 Union Technologies Informatique are associated (or correlated) with Affluent Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Affluent Medical SAS has no effect on the direction of Union Technologies i.e., Union Technologies and Affluent Medical go up and down completely randomly.
Pair Corralation between Union Technologies and Affluent Medical
Assuming the 90 days trading horizon Union Technologies Informatique is expected to generate 0.55 times more return on investment than Affluent Medical. However, Union Technologies Informatique is 1.81 times less risky than Affluent Medical. It trades about -0.05 of its potential returns per unit of risk. Affluent Medical SAS is currently generating about -0.21 per unit of risk. If you would invest 22.00 in Union Technologies Informatique on September 13, 2024 and sell it today you would lose (1.00) from holding Union Technologies Informatique or give up 4.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Union Technologies Informatiqu vs. Affluent Medical SAS
Performance |
| Timeline |
| Union Technologies |
| Affluent Medical SAS |
Union Technologies and Affluent Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Union Technologies and Affluent Medical
The main advantage of trading using opposite Union Technologies and Affluent Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Union Technologies position performs unexpectedly, Affluent 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 Affluent Medical will offset losses from the drop in Affluent Medical's long position.| Union Technologies vs. Linedata Services SA | Union Technologies vs. Lectra SA | Union Technologies vs. Manitou BF SA | Union Technologies vs. Ossiam Minimum Variance |
| Affluent Medical vs. Hydrogene De France | Affluent Medical vs. Manitou BF SA | Affluent Medical vs. Ossiam Minimum Variance | Affluent Medical vs. 21Shares Polkadot ETP |
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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