Correlation Between Chicago Atlantic and Raffles Medical
Can any of the company-specific risk be diversified away by investing in both Chicago Atlantic and Raffles 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 Chicago Atlantic and Raffles Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chicago Atlantic BDC, and Raffles Medical Group, you can compare the effects of market volatilities on Chicago Atlantic and Raffles 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 Chicago Atlantic with a short position of Raffles Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chicago Atlantic and Raffles Medical.
Diversification Opportunities for Chicago Atlantic and Raffles Medical
-0.97 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Chicago and Raffles is -0.97. Overlapping area represents the amount of risk that can be diversified away by holding Chicago Atlantic BDC, and Raffles Medical Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Raffles Medical Group and Chicago Atlantic 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 Chicago Atlantic BDC, are associated (or correlated) with Raffles Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Raffles Medical Group has no effect on the direction of Chicago Atlantic i.e., Chicago Atlantic and Raffles Medical go up and down completely randomly.
Pair Corralation between Chicago Atlantic and Raffles Medical
If you would invest 1,057 in Chicago Atlantic BDC, on September 24, 2024 and sell it today you would earn a total of 170.50 from holding Chicago Atlantic BDC, or generate 16.13% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Significant |
Accuracy | 1.54% |
Values | Daily Returns |
Chicago Atlantic BDC, vs. Raffles Medical Group
Performance |
Timeline |
Chicago Atlantic BDC, |
Raffles Medical Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Chicago Atlantic and Raffles Medical Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Chicago Atlantic and Raffles Medical
The main advantage of trading using opposite Chicago Atlantic and Raffles Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chicago Atlantic position performs unexpectedly, Raffles 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 Raffles Medical will offset losses from the drop in Raffles Medical's long position.Chicago Atlantic vs. KeyCorp | Chicago Atlantic vs. PennantPark Floating Rate | Chicago Atlantic vs. Microbot Medical | Chicago Atlantic vs. Merit Medical Systems |
Raffles Medical vs. Pennant Group | Raffles Medical vs. Surgery Partners | Raffles Medical vs. The Ensign Group | Raffles Medical vs. Encompass Health Corp |
Check out your portfolio center.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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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