Correlation Between Aramis SAS and Affluent Medical

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

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

Diversification Opportunities for Aramis SAS and Affluent Medical

0.32

Correlation Coefficient

Aramis SAS  Affluent Medical

Weak diversification

The 3 months correlation between Aramis and Affluent is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Aramis 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 Aramis SAS 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 Aramis 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 Aramis SAS i.e., Aramis SAS and Affluent Medical go up and down completely randomly.

Pair Corralation between Aramis SAS and Affluent Medical

Assuming the 90 days trading horizon Aramis SAS is expected to under-perform the Affluent Medical. In addition to that, Aramis SAS is 1.16 times more volatile than Affluent Medical SAS. It trades about -0.17 of its total potential returns per unit of risk. Affluent Medical SAS is currently generating about -0.02 per unit of volatility. If you would invest  135.00  in Affluent Medical SAS on April 24, 2025 and sell it today you would lose (6.00) from holding Affluent Medical SAS or give up 4.44% of portfolio value over 90 days.

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

Aramis SAS  vs.  Affluent Medical SAS

Aramis SAS

Risk-Adjusted Performance

Very Weak

Over the last 90 days Aramis 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 somewhat strong basic indicators, Affluent Medical is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Aramis SAS and Affluent Medical

The main advantage of trading using opposite Aramis SAS and Affluent Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aramis SAS 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 Aramis 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.