Correlation Between CryoCell International and Select Medical
Can any of the company-specific risk be diversified away by investing in both CryoCell International and Select 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 CryoCell International and Select Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CryoCell International and Select Medical Holdings, you can compare the effects of market volatilities on CryoCell International and Select 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 CryoCell International with a short position of Select Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of CryoCell International and Select Medical.
Diversification Opportunities for CryoCell International and Select Medical
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between CryoCell and Select is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding CryoCell International and Select Medical Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Select Medical Holdings and CryoCell International 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 CryoCell International are associated (or correlated) with Select Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Select Medical Holdings has no effect on the direction of CryoCell International i.e., CryoCell International and Select Medical go up and down completely randomly.
Pair Corralation between CryoCell International and Select Medical
Given the investment horizon of 90 days CryoCell International is expected to generate 1.18 times more return on investment than Select Medical. However, CryoCell International is 1.18 times more volatile than Select Medical Holdings. It trades about 0.24 of its potential returns per unit of risk. Select Medical Holdings is currently generating about 0.25 per unit of risk. If you would invest 710.00 in CryoCell International on August 31, 2024 and sell it today you would earn a total of 157.00 from holding CryoCell International or generate 22.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
CryoCell International vs. Select Medical Holdings
Performance |
| Timeline |
| CryoCell International |
| Select Medical Holdings |
CryoCell International and Select Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CryoCell International and Select Medical
The main advantage of trading using opposite CryoCell International and Select Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CryoCell International position performs unexpectedly, Select 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 Select Medical will offset losses from the drop in Select Medical's long position.| CryoCell International vs. National HealthCare | CryoCell International vs. InnovAge Holding Corp | CryoCell International vs. Pennant Group | CryoCell International vs. Encompass Health Corp |
| Select Medical vs. The Ensign Group | Select Medical vs. Encompass Health Corp | Select Medical vs. InnovAge Holding Corp | Select Medical vs. Enhabit |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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