Correlation Between MEDICAL FACILITIES and AT S

Can any of the company-specific risk be diversified away by investing in both MEDICAL FACILITIES and AT S 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 MEDICAL FACILITIES and AT S into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between MEDICAL FACILITIES NEW and AT S Austria, you can compare the effects of market volatilities on MEDICAL FACILITIES and AT S 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 MEDICAL FACILITIES with a short position of AT S. Check out your portfolio center. Please also check ongoing floating volatility patterns of MEDICAL FACILITIES and AT S.

Diversification Opportunities for MEDICAL FACILITIES and AT S

-0.16

Correlation Coefficient

MEDICAL FACILITIES  AT S

Good diversification

The 3 months correlation between MEDICAL and AUS is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding MEDICAL FACILITIES NEW and AT S Austria in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AT S Austria and MEDICAL FACILITIES 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 MEDICAL FACILITIES NEW are associated (or correlated) with AT S. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AT S Austria has no effect on the direction of MEDICAL FACILITIES i.e., MEDICAL FACILITIES and AT S go up and down completely randomly.

Pair Corralation between MEDICAL FACILITIES and AT S

Assuming the 90 days horizon MEDICAL FACILITIES NEW is expected to under-perform the AT S. In addition to that, MEDICAL FACILITIES is 1.16 times more volatile than AT S Austria. It trades about -0.04 of its total potential returns per unit of risk. AT S Austria is currently generating about 0.14 per unit of volatility. If you would invest  1,074  in AT S Austria on December 20, 2024 and sell it today you would earn a total of  306.00  from holding AT S Austria or generate 28.49% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.33%
Values	Daily Returns

MEDICAL FACILITIES NEW  vs.  AT S Austria

MEDICAL FACILITIES NEW

Risk-Adjusted Performance

Very Weak

Over the last 90 days MEDICAL FACILITIES NEW has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

AT S Austria

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in AT S Austria are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, AT S reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with MEDICAL FACILITIES and AT S

The main advantage of trading using opposite MEDICAL FACILITIES and AT S positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MEDICAL FACILITIES position performs unexpectedly, AT S 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 AT S will offset losses from the drop in AT S's long position.

The idea behind MEDICAL FACILITIES NEW and AT S Austria pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.