Correlation Between Concord Medical and Healthcare Solutions
Can any of the company-specific risk be diversified away by investing in both Concord Medical and Healthcare Solutions 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 Healthcare Solutions 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 Healthcare Solutions Management, you can compare the effects of market volatilities on Concord Medical and Healthcare Solutions 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 Healthcare Solutions. Check out your portfolio center. Please also check ongoing floating volatility patterns of Concord Medical and Healthcare Solutions.
Diversification Opportunities for Concord Medical and Healthcare Solutions
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Concord and Healthcare is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Concord Medical Services and Healthcare Solutions Managemen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Healthcare Solutions 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 Healthcare Solutions. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Healthcare Solutions has no effect on the direction of Concord Medical i.e., Concord Medical and Healthcare Solutions go up and down completely randomly.
Pair Corralation between Concord Medical and Healthcare Solutions
If you would invest 450.00 in Concord Medical Services on October 24, 2024 and sell it today you would earn a total of 11.00 from holding Concord Medical Services or generate 2.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Concord Medical Services vs. Healthcare Solutions Managemen
Performance |
| Timeline |
| Concord Medical Services |
| Healthcare Solutions |
Concord Medical and Healthcare Solutions Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Concord Medical and Healthcare Solutions
The main advantage of trading using opposite Concord Medical and Healthcare Solutions positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Concord Medical position performs unexpectedly, Healthcare Solutions 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 Healthcare Solutions will offset losses from the drop in Healthcare Solutions' long position.| Concord Medical vs. Pennant Group | Concord Medical vs. Encompass Health Corp | Concord Medical vs. Enhabit | Concord Medical vs. National HealthCare |
| Healthcare Solutions vs. Concord Medical Services | Healthcare Solutions vs. American Shared Hospital | Healthcare Solutions vs. Sonida Senior Living | Healthcare Solutions vs. Oncology Institute |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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