Correlation Between Laboratory and Airsculpt Technologies
Can any of the company-specific risk be diversified away by investing in both Laboratory and Airsculpt Technologies 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 Laboratory and Airsculpt Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Laboratory of and Airsculpt Technologies, you can compare the effects of market volatilities on Laboratory and Airsculpt Technologies 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 Laboratory with a short position of Airsculpt Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Laboratory and Airsculpt Technologies.
Diversification Opportunities for Laboratory and Airsculpt Technologies
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Laboratory and Airsculpt is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Laboratory of and Airsculpt Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Airsculpt Technologies and Laboratory 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 Laboratory of are associated (or correlated) with Airsculpt Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Airsculpt Technologies has no effect on the direction of Laboratory i.e., Laboratory and Airsculpt Technologies go up and down completely randomly.
Pair Corralation between Laboratory and Airsculpt Technologies
Allowing for the 90-day total investment horizon Laboratory is expected to generate 1.48 times less return on investment than Airsculpt Technologies. But when comparing it to its historical volatility, Laboratory of is 3.86 times less risky than Airsculpt Technologies. It trades about 0.06 of its potential returns per unit of risk. Airsculpt Technologies is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 558.00 in Airsculpt Technologies on September 24, 2024 and sell it today you would lose (23.00) from holding Airsculpt Technologies or give up 4.12% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Laboratory of vs. Airsculpt Technologies
Performance |
Timeline |
Laboratory |
Airsculpt Technologies |
Laboratory and Airsculpt Technologies Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Laboratory and Airsculpt Technologies
The main advantage of trading using opposite Laboratory and Airsculpt Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Laboratory position performs unexpectedly, Airsculpt Technologies 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 Airsculpt Technologies will offset losses from the drop in Airsculpt Technologies' long position.Laboratory vs. Cigna Corp | Laboratory vs. Definitive Healthcare Corp | Laboratory vs. Edwards Lifesciences Corp | Laboratory vs. Mednax Inc |
Airsculpt Technologies vs. Acadia Healthcare | Airsculpt Technologies vs. Pennant Group | Airsculpt Technologies vs. Amedisys | Airsculpt Technologies vs. The Ensign Group |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |