Correlation Between Cheops Technology and Affluent Medical

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

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

Diversification Opportunities for Cheops Technology and Affluent Medical

-0.12

Correlation Coefficient

Cheops Technology  Affluent Medical

Good diversification

The 3 months correlation between Cheops and Affluent is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Cheops Technology France 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 Cheops Technology 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 Cheops Technology France 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 Cheops Technology i.e., Cheops Technology and Affluent Medical go up and down completely randomly.

Pair Corralation between Cheops Technology and Affluent Medical

Assuming the 90 days trading horizon Cheops Technology France is expected to generate 1.19 times more return on investment than Affluent Medical. However, Cheops Technology is 1.19 times more volatile than Affluent Medical SAS. It trades about -0.01 of its potential returns per unit of risk. Affluent Medical SAS is currently generating about -0.02 per unit of risk. If you would invest  6,450  in Cheops Technology France on April 24, 2025 and sell it today you would lose (250.00) from holding Cheops Technology France or give up 3.88% of portfolio value over 90 days.

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

Cheops Technology France  vs.  Affluent Medical SAS

Cheops Technology France

Risk-Adjusted Performance

Very Weak

Over the last 90 days Cheops Technology France has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Cheops Technology is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the 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 Cheops Technology and Affluent Medical

The main advantage of trading using opposite Cheops Technology and Affluent Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cheops Technology 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 Cheops Technology France 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.