Correlation Between LNA Sante and Affluent Medical
Can any of the company-specific risk be diversified away by investing in both LNA Sante 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 LNA Sante and Affluent Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LNA Sante SA and Affluent Medical SAS, you can compare the effects of market volatilities on LNA Sante 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 LNA Sante with a short position of Affluent Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of LNA Sante and Affluent Medical.
Diversification Opportunities for LNA Sante and Affluent Medical
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between LNA and Affluent is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding LNA Sante SA 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 LNA Sante 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 LNA Sante SA 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 LNA Sante i.e., LNA Sante and Affluent Medical go up and down completely randomly.
Pair Corralation between LNA Sante and Affluent Medical
Assuming the 90 days trading horizon LNA Sante SA is expected to generate 0.44 times more return on investment than Affluent Medical. However, LNA Sante SA is 2.27 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 -0.17 per unit of risk. If you would invest 2,400 in LNA Sante SA on August 29, 2024 and sell it today you would lose (50.00) from holding LNA Sante SA or give up 2.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
LNA Sante SA vs. Affluent Medical SAS
Performance |
| Timeline |
| LNA Sante SA |
| Affluent Medical SAS |
LNA Sante and Affluent Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LNA Sante and Affluent Medical
The main advantage of trading using opposite LNA Sante and Affluent Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LNA Sante 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.| LNA Sante vs. Biomerieux SA | LNA Sante vs. Eurofins Scientific SE | LNA Sante vs. Sartorius Stedim Biotech | LNA Sante vs. SEB SA |
| Affluent Medical vs. Virbac SA | Affluent Medical vs. Boiron SA | Affluent Medical vs. Bonduelle SCA | Affluent Medical vs. LNA Sante SA |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |