Correlation Between Beyond Air and Airsculpt Technologies
Can any of the company-specific risk be diversified away by investing in both Beyond Air 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 Beyond Air and Airsculpt Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Beyond Air and Airsculpt Technologies, you can compare the effects of market volatilities on Beyond Air 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 Beyond Air with a short position of Airsculpt Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beyond Air and Airsculpt Technologies.
Diversification Opportunities for Beyond Air and Airsculpt Technologies
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Beyond and Airsculpt is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Beyond Air and Airsculpt Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Airsculpt Technologies and Beyond Air 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 Beyond Air 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 Beyond Air i.e., Beyond Air and Airsculpt Technologies go up and down completely randomly.
Pair Corralation between Beyond Air and Airsculpt Technologies
Given the investment horizon of 90 days Beyond Air is expected to generate 1.46 times more return on investment than Airsculpt Technologies. However, Beyond Air is 1.46 times more volatile than Airsculpt Technologies. It trades about -0.18 of its potential returns per unit of risk. Airsculpt Technologies is currently generating about -0.28 per unit of risk. If you would invest 55.00 in Beyond Air on September 24, 2024 and sell it today you would lose (15.00) from holding Beyond Air or give up 27.27% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Beyond Air vs. Airsculpt Technologies
Performance |
Timeline |
Beyond Air |
Airsculpt Technologies |
Beyond Air and Airsculpt Technologies Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Beyond Air and Airsculpt Technologies
The main advantage of trading using opposite Beyond Air and Airsculpt Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beyond Air 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.Beyond Air vs. Cigna Corp | Beyond Air vs. Definitive Healthcare Corp | Beyond Air vs. Guardant Health | Beyond Air vs. Laboratory of |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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