Correlation Between AFFLUENT MEDICAL and ATT

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

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

Diversification Opportunities for AFFLUENT MEDICAL and ATT

0.37

Correlation Coefficient

AFFLUENT MEDICAL  ATT

Weak diversification

The 3 months correlation between AFFLUENT and ATT is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding AFFLUENT MEDICAL SAS and ATT Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATT Inc and AFFLUENT MEDICAL 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 AFFLUENT MEDICAL SAS are associated (or correlated) with ATT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATT Inc has no effect on the direction of AFFLUENT MEDICAL i.e., AFFLUENT MEDICAL and ATT go up and down completely randomly.

Pair Corralation between AFFLUENT MEDICAL and ATT

Assuming the 90 days horizon AFFLUENT MEDICAL SAS is expected to under-perform the ATT. In addition to that, AFFLUENT MEDICAL is 1.85 times more volatile than ATT Inc. It trades about -0.04 of its total potential returns per unit of risk. ATT Inc is currently generating about 0.0 per unit of volatility. If you would invest  2,322  in ATT Inc on April 22, 2025 and sell it today you would lose (22.00) from holding ATT Inc or give up 0.95% of portfolio value over 90 days.

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

AFFLUENT MEDICAL SAS  vs.  ATT Inc

AFFLUENT MEDICAL SAS

Risk-Adjusted Performance

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 nearly stable basic indicators, AFFLUENT MEDICAL is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

ATT Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days ATT Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable fundamental drivers, ATT is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with AFFLUENT MEDICAL and ATT

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

The idea behind AFFLUENT MEDICAL SAS and ATT Inc 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.