Correlation Between ASGN and RadNet
Can any of the company-specific risk be diversified away by investing in both ASGN and RadNet 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 ASGN and RadNet into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ASGN Inc and RadNet Inc, you can compare the effects of market volatilities on ASGN and RadNet 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 ASGN with a short position of RadNet. Check out your portfolio center. Please also check ongoing floating volatility patterns of ASGN and RadNet.
Diversification Opportunities for ASGN and RadNet
Very good diversification
The 3 months correlation between ASGN and RadNet is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding ASGN Inc and RadNet Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RadNet Inc and ASGN 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 ASGN Inc are associated (or correlated) with RadNet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RadNet Inc has no effect on the direction of ASGN i.e., ASGN and RadNet go up and down completely randomly.
Pair Corralation between ASGN and RadNet
Given the investment horizon of 90 days ASGN Inc is expected to generate 0.93 times more return on investment than RadNet. However, ASGN Inc is 1.08 times less risky than RadNet. It trades about -0.03 of its potential returns per unit of risk. RadNet Inc is currently generating about -0.21 per unit of risk. If you would invest 8,439 in ASGN Inc on September 20, 2024 and sell it today you would lose (119.00) from holding ASGN Inc or give up 1.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ASGN Inc vs. RadNet Inc
Performance |
| Timeline |
| ASGN Inc |
| RadNet Inc |
ASGN and RadNet Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ASGN and RadNet
The main advantage of trading using opposite ASGN and RadNet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ASGN position performs unexpectedly, RadNet 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 RadNet will offset losses from the drop in RadNet's long position.The idea behind ASGN Inc and RadNet Inc 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.| RadNet vs. Sotera Health Co | RadNet vs. Neogen | RadNet vs. Myriad Genetics | RadNet vs. bioAffinity Technologies Warrant |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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