Correlation Between Athens Medical and Performance Technologies

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

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

Diversification Opportunities for Athens Medical and Performance Technologies

0.0

Correlation Coefficient

Athens Medical  Performance Technologies

Pay attention - limited upside

The 3 months correlation between Athens and Performance is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Athens Medical CSA and Performance Technologies SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Performance Technologies and Athens 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 Athens Medical CSA are associated (or correlated) with Performance Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Performance Technologies has no effect on the direction of Athens Medical i.e., Athens Medical and Performance Technologies go up and down completely randomly.

Pair Corralation between Athens Medical and Performance Technologies

Assuming the 90 days trading horizon Athens Medical is expected to generate 3.03 times less return on investment than Performance Technologies. But when comparing it to its historical volatility, Athens Medical CSA is 1.05 times less risky than Performance Technologies. It trades about 0.05 of its potential returns per unit of risk. Performance Technologies SA is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest  540.00  in Performance Technologies SA on April 24, 2025 and sell it today you would earn a total of  99.00  from holding Performance Technologies SA or generate 18.33% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Athens Medical CSA  vs.  Performance Technologies SA

Athens Medical CSA

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Athens Medical CSA are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Athens Medical is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Performance Technologies

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Performance Technologies SA are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Performance Technologies unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Athens Medical and Performance Technologies

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

The idea behind Athens Medical CSA and Performance Technologies SA 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.