Correlation Between Aesthetic Medical and WashTec AG

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

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

Diversification Opportunities for Aesthetic Medical and WashTec AG

0.0

Correlation Coefficient

Aesthetic Medical  WashTec AG

Pay attention - limited upside

The 3 months correlation between Aesthetic and WashTec is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Aesthetic Medical Intl and WashTec AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WashTec AG and Aesthetic 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 Aesthetic Medical Intl are associated (or correlated) with WashTec AG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WashTec AG has no effect on the direction of Aesthetic Medical i.e., Aesthetic Medical and WashTec AG go up and down completely randomly.

Pair Corralation between Aesthetic Medical and WashTec AG

If you would invest (100.00) in Aesthetic Medical Intl on December 30, 2024 and sell it today you would earn a total of  100.00  from holding Aesthetic Medical Intl or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Aesthetic Medical Intl  vs.  WashTec AG

Aesthetic Medical Intl

Risk-Adjusted Performance

Very Weak

Over the last 90 days Aesthetic Medical Intl has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong forward indicators, Aesthetic Medical is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

WashTec AG

Risk-Adjusted Performance

Very Weak

Over the last 90 days WashTec AG has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's fundamental indicators remain nearly stable which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with Aesthetic Medical and WashTec AG

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

The idea behind Aesthetic Medical Intl and WashTec AG 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.