Correlation Between NFL Biosciences and Affluent Medical

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

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

Diversification Opportunities for NFL Biosciences and Affluent Medical

0.68

Correlation Coefficient

NFL Biosciences  Affluent Medical

Poor diversification

The 3 months correlation between NFL and Affluent is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding NFL Biosciences SAS and Affluent Medical SAS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Affluent Medical SAS and NFL Biosciences 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 NFL Biosciences SAS are associated (or correlated) with Affluent Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Affluent Medical SAS has no effect on the direction of NFL Biosciences i.e., NFL Biosciences and Affluent Medical go up and down completely randomly.

Pair Corralation between NFL Biosciences and Affluent Medical

Assuming the 90 days trading horizon NFL Biosciences SAS is expected to generate 0.61 times more return on investment than Affluent Medical. However, NFL Biosciences SAS is 1.63 times less risky than Affluent Medical. It trades about -0.05 of its potential returns per unit of risk. Affluent Medical SAS is currently generating about -0.09 per unit of risk. If you would invest  196.00  in NFL Biosciences SAS on September 30, 2024 and sell it today you would lose (11.00) from holding NFL Biosciences SAS or give up 5.61% of portfolio value over 90 days.

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

NFL Biosciences SAS  vs.  Affluent Medical SAS

NFL Biosciences SAS

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days NFL Biosciences SAS has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest weak performance, the Stock's basic indicators remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the enterprise retail investors.

Affluent Medical SAS

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Affluent Medical SAS 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 basic indicators remain somewhat strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with NFL Biosciences and Affluent Medical

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

The idea behind NFL Biosciences SAS and Affluent Medical SAS 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.