Correlation Between Burning Rock and RadNet

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Burning Rock 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 Burning Rock and RadNet into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Burning Rock Biotech and RadNet Inc, you can compare the effects of market volatilities on Burning Rock 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 Burning Rock with a short position of RadNet. Check out your portfolio center. Please also check ongoing floating volatility patterns of Burning Rock and RadNet.

Diversification Opportunities for Burning Rock and RadNet

BurningRadNetDiversified AwayBurningRadNetDiversified Away100%
-0.19
  Correlation Coefficient

Good diversification

The 3 months correlation between Burning and RadNet is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Burning Rock Biotech and RadNet Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RadNet Inc and Burning Rock 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 Burning Rock Biotech 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 Burning Rock i.e., Burning Rock and RadNet go up and down completely randomly.

Pair Corralation between Burning Rock and RadNet

Considering the 90-day investment horizon Burning Rock Biotech is expected to under-perform the RadNet. In addition to that, Burning Rock is 2.02 times more volatile than RadNet Inc. It trades about -0.04 of its total potential returns per unit of risk. RadNet Inc is currently generating about 0.06 per unit of volatility. If you would invest  2,730  in RadNet Inc on December 4, 2024 and sell it today you would earn a total of  2,220  from holding RadNet Inc or generate 81.3% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Burning Rock Biotech  vs.  RadNet Inc

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb -20-10010203040
JavaScript chart by amCharts 3.21.15BNR RDNT
       Timeline  
Burning Rock Biotech 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Burning Rock Biotech has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest weak performance, the Stock's basic indicators remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the enterprise retail investors.
JavaScript chart by amCharts 3.21.15JanFebMarFebMar5.566.577.5
RadNet Inc 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days RadNet Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.
JavaScript chart by amCharts 3.21.15JanFebMarFebMar50556065707580

Burning Rock and RadNet Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-21.2-15.88-10.55-5.230.05.2710.7216.1821.6327.08 0.010.020.030.040.050.06
JavaScript chart by amCharts 3.21.15BNR RDNT
       Returns  

Pair Trading with Burning Rock and RadNet

The main advantage of trading using opposite Burning Rock and RadNet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Burning Rock 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 Burning Rock Biotech 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.
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.

Other Complementary Tools

Equity Search
Search for actively traded equities including funds and ETFs from over 30 global markets
Commodity Channel
Use Commodity Channel Index to analyze current equity momentum
Content Syndication
Quickly integrate customizable finance content to your own investment portal
Stocks Directory
Find actively traded stocks across global markets
Fundamental Analysis
View fundamental data based on most recent published financial statements