Correlation Between Burning Rock and RadNet
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
-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 Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Burning Rock Biotech vs. RadNet Inc
Performance |
| Timeline |
| Burning Rock Biotech |
| RadNet Inc |
Burning Rock and RadNet Volatility Contrast
Predicted Return Density |
| 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.| Burning Rock vs. Fonar | ||
| Burning Rock vs. Sera Prognostics | ||
| Burning Rock vs. Neuronetics | ||
| Burning Rock vs. DarioHealth Corp |
| 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 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 |