Correlation Between Concord Medical and Guardian Pharmacy
Can any of the company-specific risk be diversified away by investing in both Concord Medical and Guardian Pharmacy 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 Concord Medical and Guardian Pharmacy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Concord Medical Services and Guardian Pharmacy Services,, you can compare the effects of market volatilities on Concord Medical and Guardian Pharmacy 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 Concord Medical with a short position of Guardian Pharmacy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Concord Medical and Guardian Pharmacy.
Diversification Opportunities for Concord Medical and Guardian Pharmacy
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Concord and Guardian is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Concord Medical Services and Guardian Pharmacy Services, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guardian Pharmacy and Concord Medical 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 Concord Medical Services are associated (or correlated) with Guardian Pharmacy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guardian Pharmacy has no effect on the direction of Concord Medical i.e., Concord Medical and Guardian Pharmacy go up and down completely randomly.
Pair Corralation between Concord Medical and Guardian Pharmacy
Considering the 90-day investment horizon Concord Medical Services is expected to under-perform the Guardian Pharmacy. In addition to that, Concord Medical is 2.05 times more volatile than Guardian Pharmacy Services,. It trades about -0.24 of its total potential returns per unit of risk. Guardian Pharmacy Services, is currently generating about 0.43 per unit of volatility. If you would invest 1,827 in Guardian Pharmacy Services, on September 2, 2024 and sell it today you would earn a total of 667.00 from holding Guardian Pharmacy Services, or generate 36.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Concord Medical Services vs. Guardian Pharmacy Services,
Performance |
| Timeline |
| Concord Medical Services |
| Guardian Pharmacy |
Concord Medical and Guardian Pharmacy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Concord Medical and Guardian Pharmacy
The main advantage of trading using opposite Concord Medical and Guardian Pharmacy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Concord Medical position performs unexpectedly, Guardian Pharmacy 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 Guardian Pharmacy will offset losses from the drop in Guardian Pharmacy's long position.| Concord Medical vs. Pennant Group | Concord Medical vs. Encompass Health Corp | Concord Medical vs. Enhabit | Concord Medical vs. National HealthCare |
| Guardian Pharmacy vs. Regional Health Properties | Guardian Pharmacy vs. Novo Integrated Sciences | Guardian Pharmacy vs. CIMG Inc | Guardian Pharmacy vs. RDE, Inc |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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