Correlation Between AT S and G Medical

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

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

Diversification Opportunities for AT S and G Medical

0.0

Correlation Coefficient

AT S  G Medical

Pay attention - limited upside

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

Pair Corralation between AT S and G Medical

If you would invest  1,175  in AT S Austria on December 26, 2024 and sell it today you would earn a total of  230.00  from holding AT S Austria or generate 19.57% return on investment over 90 days.

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

AT S Austria  vs.  G Medical Innovations

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 7 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent basic indicators, AT S demonstrated solid returns over the last few months and may actually be approaching a breakup point.

G Medical Innovations

Risk-Adjusted Performance

Very Weak

Over the last 90 days G Medical Innovations has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable fundamental indicators, G Medical is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with AT S and G Medical

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

The idea behind AT S Austria and G Medical Innovations 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.