Correlation Between Hotel Majestic and Affluent Medical
Can any of the company-specific risk be diversified away by investing in both Hotel Majestic 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 Hotel Majestic and Affluent Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hotel Majestic Cannes and Affluent Medical SAS, you can compare the effects of market volatilities on Hotel Majestic 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 Hotel Majestic with a short position of Affluent Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hotel Majestic and Affluent Medical.
Diversification Opportunities for Hotel Majestic and Affluent Medical
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hotel and Affluent is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Hotel Majestic Cannes 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 Hotel Majestic 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 Hotel Majestic Cannes 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 Hotel Majestic i.e., Hotel Majestic and Affluent Medical go up and down completely randomly.
Pair Corralation between Hotel Majestic and Affluent Medical
If you would invest 138.00 in Affluent Medical SAS on December 1, 2024 and sell it today you would earn a total of 3.00 from holding Affluent Medical SAS or generate 2.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hotel Majestic Cannes vs. Affluent Medical SAS
Performance |
| Timeline |
| Hotel Majestic Cannes |
| Affluent Medical SAS |
Hotel Majestic and Affluent Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hotel Majestic and Affluent Medical
The main advantage of trading using opposite Hotel Majestic and Affluent Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hotel Majestic 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.| Hotel Majestic vs. Jacquet Metal Service | Hotel Majestic vs. Credit Agricole SA | Hotel Majestic vs. STMicroelectronics NV | Hotel Majestic vs. Seche Environnem |
| Affluent Medical vs. Aramis SAS | Affluent Medical vs. Spartoo SAS | Affluent Medical vs. Hydrogene De France | Affluent Medical vs. Omer Decugis Cie |
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
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |