Correlation Between AFFLUENT MEDICAL and Advanced Medical
Can any of the company-specific risk be diversified away by investing in both AFFLUENT MEDICAL and Advanced 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 AFFLUENT MEDICAL and Advanced Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AFFLUENT MEDICAL SAS and Advanced Medical Solutions, you can compare the effects of market volatilities on AFFLUENT MEDICAL and Advanced 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 AFFLUENT MEDICAL with a short position of Advanced Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of AFFLUENT MEDICAL and Advanced Medical.
Diversification Opportunities for AFFLUENT MEDICAL and Advanced Medical
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AFFLUENT and Advanced is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding AFFLUENT MEDICAL SAS and Advanced Medical Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Advanced Medical Sol and AFFLUENT 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 AFFLUENT MEDICAL SAS are associated (or correlated) with Advanced Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Advanced Medical Sol has no effect on the direction of AFFLUENT MEDICAL i.e., AFFLUENT MEDICAL and Advanced Medical go up and down completely randomly.
Pair Corralation between AFFLUENT MEDICAL and Advanced Medical
Assuming the 90 days horizon AFFLUENT MEDICAL SAS is expected to generate 1.74 times more return on investment than Advanced Medical. However, AFFLUENT MEDICAL is 1.74 times more volatile than Advanced Medical Solutions. It trades about 0.04 of its potential returns per unit of risk. Advanced Medical Solutions is currently generating about 0.03 per unit of risk. If you would invest 145.00 in AFFLUENT MEDICAL SAS on September 3, 2025 and sell it today you would earn a total of 7.00 from holding AFFLUENT MEDICAL SAS or generate 4.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AFFLUENT MEDICAL SAS vs. Advanced Medical Solutions
Performance |
| Timeline |
| AFFLUENT MEDICAL SAS |
| Advanced Medical Sol |
AFFLUENT MEDICAL and Advanced Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AFFLUENT MEDICAL and Advanced Medical
The main advantage of trading using opposite AFFLUENT MEDICAL and Advanced Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AFFLUENT MEDICAL position performs unexpectedly, Advanced 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 Advanced Medical will offset losses from the drop in Advanced Medical's long position.| AFFLUENT MEDICAL vs. Apple Inc | AFFLUENT MEDICAL vs. Apple Inc | AFFLUENT MEDICAL vs. Apple Inc | AFFLUENT MEDICAL vs. Apple Inc |
| Advanced Medical vs. Sun Life Financial | Advanced Medical vs. Highlight Communications AG | Advanced Medical vs. BIOPHARMA CREDIT DL | Advanced Medical vs. HEMISPHERE EGY |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |