Correlation Between Airsculpt Technologies and CryoCell International

Can any of the company-specific risk be diversified away by investing in both Airsculpt Technologies and CryoCell International 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 Airsculpt Technologies and CryoCell International into the same portfolio, which is an essential part of the fundamental portfolio management process.

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

Diversification Opportunities for Airsculpt Technologies and CryoCell International

0.75

Correlation Coefficient

Airsculpt Technologies  CryoCell International

Poor diversification

The 3 months correlation between Airsculpt and CryoCell is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Airsculpt Technologies and CryoCell International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CryoCell International and Airsculpt Technologies 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 Airsculpt Technologies are associated (or correlated) with CryoCell International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CryoCell International has no effect on the direction of Airsculpt Technologies i.e., Airsculpt Technologies and CryoCell International go up and down completely randomly.

Pair Corralation between Airsculpt Technologies and CryoCell International

Given the investment horizon of 90 days Airsculpt Technologies is expected to generate 3.12 times less return on investment than CryoCell International. In addition to that, Airsculpt Technologies is 1.3 times more volatile than CryoCell International. It trades about 0.03 of its total potential returns per unit of risk. CryoCell International is currently generating about 0.14 per unit of volatility. If you would invest  612.00  in CryoCell International on September 23, 2024 and sell it today you would earn a total of  171.00  from holding CryoCell International or generate 27.94% return on investment over 90 days.

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

Airsculpt Technologies  vs.  CryoCell International

Airsculpt Technologies

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Airsculpt Technologies are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively inconsistent basic indicators, Airsculpt Technologies may actually be approaching a critical reversion point that can send shares even higher in January 2025.

CryoCell International

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in CryoCell International are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite quite unsteady technical and fundamental indicators, CryoCell International disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Airsculpt Technologies and CryoCell International

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

The idea behind Airsculpt Technologies and CryoCell International 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.