Correlation Between Semco Technologies and Affluent Medical

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

By analyzing existing cross correlation between Semco Technologies Sas and Affluent Medical SAS, you can compare the effects of market volatilities on Semco Technologies and Affluent 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 Semco Technologies with a short position of Affluent Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Semco Technologies and Affluent Medical.

Diversification Opportunities for Semco Technologies and Affluent Medical

-0.24

Correlation Coefficient

Semco Technologies  Affluent Medical

Very good diversification

The 3 months correlation between Semco and Affluent is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Semco Technologies Sas and Affluent Medical SAS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Affluent Medical SAS and Semco Technologies 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 Semco Technologies Sas are associated (or correlated) with Affluent Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Affluent Medical SAS has no effect on the direction of Semco Technologies i.e., Semco Technologies and Affluent Medical go up and down completely randomly.

Pair Corralation between Semco Technologies and Affluent Medical

Assuming the 90 days trading horizon Semco Technologies Sas is expected to under-perform the Affluent Medical. In addition to that, Semco Technologies is 1.74 times more volatile than Affluent Medical SAS. It trades about -0.21 of its total potential returns per unit of risk. Affluent Medical SAS is currently generating about -0.05 per unit of volatility. 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

Semco Technologies Sas  vs.  Affluent Medical SAS

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.

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.

Pair Trading with Semco Technologies and Affluent Medical

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

The idea behind Semco Technologies Sas and Affluent Medical 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.