Correlation Between Affluent Medical and Compagnie

Can any of the company-specific risk be diversified away by investing in both Affluent Medical and Compagnie 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 Compagnie 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 Compagnie du Cambodge, you can compare the effects of market volatilities on Affluent Medical and Compagnie 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 Compagnie. Check out your portfolio center. Please also check ongoing floating volatility patterns of Affluent Medical and Compagnie.

Diversification Opportunities for Affluent Medical and Compagnie

0.03

Correlation Coefficient

Affluent Medical  Compagnie

Significant diversification

The 3 months correlation between Affluent and Compagnie is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Affluent Medical SAS and Compagnie du Cambodge in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Compagnie du Cambodge 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 Compagnie. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Compagnie du Cambodge has no effect on the direction of Affluent Medical i.e., Affluent Medical and Compagnie go up and down completely randomly.

Pair Corralation between Affluent Medical and Compagnie

Assuming the 90 days trading horizon Affluent Medical SAS is expected to under-perform the Compagnie. In addition to that, Affluent Medical is 1.2 times more volatile than Compagnie du Cambodge. It trades about -0.05 of its total potential returns per unit of risk. Compagnie du Cambodge is currently generating about 0.06 per unit of volatility. If you would invest  9,435  in Compagnie du Cambodge on April 23, 2025 and sell it today you would earn a total of  565.00  from holding Compagnie du Cambodge or generate 5.99% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

Affluent Medical SAS  vs.  Compagnie du Cambodge

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.

Compagnie du Cambodge

Risk-Adjusted Performance

Very Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Compagnie du Cambodge are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Compagnie may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Affluent Medical and Compagnie

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

The idea behind Affluent Medical SAS and Compagnie du Cambodge 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.