Correlation Between CryoCell International and Aesthetic Medical
Can any of the company-specific risk be diversified away by investing in both CryoCell International and Aesthetic 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 CryoCell International and Aesthetic Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CryoCell International and Aesthetic Medical Intl, you can compare the effects of market volatilities on CryoCell International and Aesthetic 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 CryoCell International with a short position of Aesthetic Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of CryoCell International and Aesthetic Medical.
Diversification Opportunities for CryoCell International and Aesthetic Medical
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between CryoCell and Aesthetic is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding CryoCell International and Aesthetic Medical Intl in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aesthetic Medical Intl and CryoCell International 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 CryoCell International are associated (or correlated) with Aesthetic Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aesthetic Medical Intl has no effect on the direction of CryoCell International i.e., CryoCell International and Aesthetic Medical go up and down completely randomly.
Pair Corralation between CryoCell International and Aesthetic Medical
If you would invest 32.00 in Aesthetic Medical Intl on July 26, 2024 and sell it today you would earn a total of 0.00 from holding Aesthetic Medical Intl or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 1.59% |
Values | Daily Returns |
CryoCell International vs. Aesthetic Medical Intl
Performance |
Timeline |
CryoCell International |
Aesthetic Medical Intl |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
CryoCell International and Aesthetic Medical Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with CryoCell International and Aesthetic Medical
The main advantage of trading using opposite CryoCell International and Aesthetic Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CryoCell International position performs unexpectedly, Aesthetic 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 Aesthetic Medical will offset losses from the drop in Aesthetic Medical's long position.CryoCell International vs. Humana Inc | CryoCell International vs. Elevance Health | CryoCell International vs. Centene Corp | CryoCell International vs. Molina Healthcare |
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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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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