Correlation Between Concord Medical and WashTec AG
Can any of the company-specific risk be diversified away by investing in both Concord Medical and WashTec AG 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 WashTec AG 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 WashTec AG, you can compare the effects of market volatilities on Concord Medical and WashTec AG 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 WashTec AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Concord Medical and WashTec AG.
Diversification Opportunities for Concord Medical and WashTec AG
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Concord and WashTec is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Concord Medical Services and WashTec AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WashTec AG 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 WashTec AG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WashTec AG has no effect on the direction of Concord Medical i.e., Concord Medical and WashTec AG go up and down completely randomly.
Pair Corralation between Concord Medical and WashTec AG
Considering the 90-day investment horizon Concord Medical Services is expected to generate 4.14 times more return on investment than WashTec AG. However, Concord Medical is 4.14 times more volatile than WashTec AG. It trades about 0.03 of its potential returns per unit of risk. WashTec AG is currently generating about 0.08 per unit of risk. If you would invest 1,360 in Concord Medical Services on September 12, 2024 and sell it today you would lose (861.00) from holding Concord Medical Services or give up 63.31% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Concord Medical Services vs. WashTec AG
Performance |
| Timeline |
| Concord Medical Services |
| WashTec AG |
Concord Medical and WashTec AG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Concord Medical and WashTec AG
The main advantage of trading using opposite Concord Medical and WashTec AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Concord Medical position performs unexpectedly, WashTec AG 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 WashTec AG will offset losses from the drop in WashTec AG's long position.| Concord Medical vs. Pennant Group | Concord Medical vs. Encompass Health Corp | Concord Medical vs. Enhabit | Concord Medical vs. National HealthCare |
| WashTec AG vs. Ramsay Health Care | WashTec AG vs. Medical Facilities | WashTec AG vs. Jack Nathan Medical | WashTec AG vs. Fresenius SE Co |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |