Correlation Between MEDICAL FACILITIES and SERI INDUSTRIAL
Can any of the company-specific risk be diversified away by investing in both MEDICAL FACILITIES and SERI INDUSTRIAL 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 MEDICAL FACILITIES and SERI INDUSTRIAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MEDICAL FACILITIES NEW and SERI INDUSTRIAL EO, you can compare the effects of market volatilities on MEDICAL FACILITIES and SERI INDUSTRIAL 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 MEDICAL FACILITIES with a short position of SERI INDUSTRIAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of MEDICAL FACILITIES and SERI INDUSTRIAL.
Diversification Opportunities for MEDICAL FACILITIES and SERI INDUSTRIAL
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MEDICAL and SERI is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding MEDICAL FACILITIES NEW and SERI INDUSTRIAL EO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SERI INDUSTRIAL EO and MEDICAL FACILITIES 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 MEDICAL FACILITIES NEW are associated (or correlated) with SERI INDUSTRIAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SERI INDUSTRIAL EO has no effect on the direction of MEDICAL FACILITIES i.e., MEDICAL FACILITIES and SERI INDUSTRIAL go up and down completely randomly.
Pair Corralation between MEDICAL FACILITIES and SERI INDUSTRIAL
Assuming the 90 days horizon MEDICAL FACILITIES NEW is expected to generate 0.39 times more return on investment than SERI INDUSTRIAL. However, MEDICAL FACILITIES NEW is 2.59 times less risky than SERI INDUSTRIAL. It trades about 0.04 of its potential returns per unit of risk. SERI INDUSTRIAL EO is currently generating about -0.07 per unit of risk. If you would invest 1,041 in MEDICAL FACILITIES NEW on October 16, 2024 and sell it today you would earn a total of 19.00 from holding MEDICAL FACILITIES NEW or generate 1.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MEDICAL FACILITIES NEW vs. SERI INDUSTRIAL EO
Performance |
| Timeline |
| MEDICAL FACILITIES NEW |
| SERI INDUSTRIAL EO |
MEDICAL FACILITIES and SERI INDUSTRIAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MEDICAL FACILITIES and SERI INDUSTRIAL
The main advantage of trading using opposite MEDICAL FACILITIES and SERI INDUSTRIAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MEDICAL FACILITIES position performs unexpectedly, SERI INDUSTRIAL 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 SERI INDUSTRIAL will offset losses from the drop in SERI INDUSTRIAL's long position.| MEDICAL FACILITIES vs. Global Ship Lease | MEDICAL FACILITIES vs. ECHO INVESTMENT ZY | MEDICAL FACILITIES vs. MidCap Financial Investment | MEDICAL FACILITIES vs. SLR Investment Corp |
| SERI INDUSTRIAL vs. ASPEN TECHINC DL | SERI INDUSTRIAL vs. GLOBUS MEDICAL A | SERI INDUSTRIAL vs. Bio Techne Corp | SERI INDUSTRIAL vs. MEDICAL FACILITIES NEW |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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