Correlation Between SPECTRAL MEDICAL and Alfa Financial
Can any of the company-specific risk be diversified away by investing in both SPECTRAL MEDICAL and Alfa Financial 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 SPECTRAL MEDICAL and Alfa Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SPECTRAL MEDICAL and Alfa Financial Software, you can compare the effects of market volatilities on SPECTRAL MEDICAL and Alfa Financial 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 SPECTRAL MEDICAL with a short position of Alfa Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPECTRAL MEDICAL and Alfa Financial.
Diversification Opportunities for SPECTRAL MEDICAL and Alfa Financial
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SPECTRAL and Alfa is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding SPECTRAL MEDICAL and Alfa Financial Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alfa Financial Software and SPECTRAL MEDICAL 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 SPECTRAL MEDICAL are associated (or correlated) with Alfa Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alfa Financial Software has no effect on the direction of SPECTRAL MEDICAL i.e., SPECTRAL MEDICAL and Alfa Financial go up and down completely randomly.
Pair Corralation between SPECTRAL MEDICAL and Alfa Financial
Assuming the 90 days horizon SPECTRAL MEDICAL is expected to generate 2.96 times more return on investment than Alfa Financial. However, SPECTRAL MEDICAL is 2.96 times more volatile than Alfa Financial Software. It trades about 0.11 of its potential returns per unit of risk. Alfa Financial Software is currently generating about -0.32 per unit of risk. If you would invest 33.00 in SPECTRAL MEDICAL on October 13, 2024 and sell it today you would earn a total of 2.00 from holding SPECTRAL MEDICAL or generate 6.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SPECTRAL MEDICAL vs. Alfa Financial Software
Performance |
| Timeline |
| SPECTRAL MEDICAL |
| Alfa Financial Software |
SPECTRAL MEDICAL and Alfa Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPECTRAL MEDICAL and Alfa Financial
The main advantage of trading using opposite SPECTRAL MEDICAL and Alfa Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPECTRAL MEDICAL position performs unexpectedly, Alfa Financial 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 Alfa Financial will offset losses from the drop in Alfa Financial's long position.| SPECTRAL MEDICAL vs. Thermo Fisher Scientific | SPECTRAL MEDICAL vs. Danaher | SPECTRAL MEDICAL vs. Siemens Healthineers AG | SPECTRAL MEDICAL vs. Agilent Technologies |
| Alfa Financial vs. PEPTONIC MEDICAL | Alfa Financial vs. CompuGroup Medical SE | Alfa Financial vs. FIREWEED METALS P | Alfa Financial vs. SPECTRAL MEDICAL |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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