Correlation Between Affluent Medical and Semco Technologies

Can any of the company-specific risk be diversified away by investing in both Affluent Medical and Semco 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 Affluent Medical and Semco Technologies 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 Semco Technologies Sas, you can compare the effects of market volatilities on Affluent Medical and Semco 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 Affluent Medical with a short position of Semco Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Affluent Medical and Semco Technologies.

Diversification Opportunities for Affluent Medical and Semco Technologies

-0.25

Correlation Coefficient

Affluent Medical  Semco Technologies

Very good diversification

The 3 months correlation between Affluent and Semco is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Affluent Medical SAS and Semco Technologies Sas in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Semco Technologies Sas 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 Semco Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Semco Technologies Sas has no effect on the direction of Affluent Medical i.e., Affluent Medical and Semco Technologies go up and down completely randomly.

Pair Corralation between Affluent Medical and Semco Technologies

Assuming the 90 days trading horizon Affluent Medical SAS is expected to generate 0.58 times more return on investment than Semco Technologies. However, Affluent Medical SAS is 1.74 times less risky than Semco Technologies. It trades about -0.05 of its potential returns per unit of risk. Semco Technologies Sas is currently generating about -0.21 per unit of risk. If you would invest  137.00  in Affluent Medical SAS on April 23, 2025 and sell it today you would lose (12.00) from holding Affluent Medical SAS or give up 8.76% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	14.29%
Values	Daily Returns

Affluent Medical SAS  vs.  Semco Technologies Sas

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 latest weak performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Semco Technologies Sas

Risk-Adjusted Performance

Very Weak

Over the last 90 days Semco Technologies Sas has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in August 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with Affluent Medical and Semco Technologies

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

The idea behind Affluent Medical SAS and Semco Technologies Sas 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.