Correlation Between Ares Management and Globus Medical,

Can any of the company-specific risk be diversified away by investing in both Ares Management and Globus 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 Ares Management and Globus Medical, into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Ares Management and Globus Medical,, you can compare the effects of market volatilities on Ares Management and Globus 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 Ares Management with a short position of Globus Medical,. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ares Management and Globus Medical,.

Diversification Opportunities for Ares Management and Globus Medical,

0.91

Correlation Coefficient

Ares Management  Globus Medical,

Almost no diversification

The 3 months correlation between Ares and Globus is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Ares Management and Globus Medical, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Globus Medical, and Ares Management 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 Ares Management are associated (or correlated) with Globus Medical,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Globus Medical, has no effect on the direction of Ares Management i.e., Ares Management and Globus Medical, go up and down completely randomly.

Pair Corralation between Ares Management and Globus Medical,

Assuming the 90 days trading horizon Ares Management is expected to generate 0.99 times more return on investment than Globus Medical,. However, Ares Management is 1.01 times less risky than Globus Medical,. It trades about 0.14 of its potential returns per unit of risk. Globus Medical, is currently generating about 0.02 per unit of risk. If you would invest  10,734  in Ares Management on October 6, 2024 and sell it today you would earn a total of  456.00  from holding Ares Management or generate 4.25% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	100.0%
Values	Daily Returns

Ares Management  vs.  Globus Medical,

Ares Management

Risk-Adjusted Performance

19 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Ares Management are ranked lower than 19 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Ares Management sustained solid returns over the last few months and may actually be approaching a breakup point.

Globus Medical,

Risk-Adjusted Performance

17 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Globus Medical, are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. Despite somewhat uncertain primary indicators, Globus Medical, sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Ares Management and Globus Medical,

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

The idea behind Ares Management and Globus Medical, 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.

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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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.