Correlation Between Certara and National Research
Can any of the company-specific risk be diversified away by investing in both Certara and National Research 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 Certara and National Research into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Certara and National Research Corp, you can compare the effects of market volatilities on Certara and National Research 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 Certara with a short position of National Research. Check out your portfolio center. Please also check ongoing floating volatility patterns of Certara and National Research.
Diversification Opportunities for Certara and National Research
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Certara and National is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Certara and National Research Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on National Research Corp and Certara 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 Certara are associated (or correlated) with National Research. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of National Research Corp has no effect on the direction of Certara i.e., Certara and National Research go up and down completely randomly.
Pair Corralation between Certara and National Research
Given the investment horizon of 90 days Certara is expected to generate 1.34 times more return on investment than National Research. However, Certara is 1.34 times more volatile than National Research Corp. It trades about -0.02 of its potential returns per unit of risk. National Research Corp is currently generating about -0.05 per unit of risk. If you would invest 1,747 in Certara on August 28, 2024 and sell it today you would lose (642.00) from holding Certara or give up 36.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Certara vs. National Research Corp
Performance |
| Timeline |
| Certara |
| National Research Corp |
Certara and National Research Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Certara and National Research
The main advantage of trading using opposite Certara and National Research positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Certara position performs unexpectedly, National Research 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 National Research will offset losses from the drop in National Research's long position.| Certara vs. National Research Corp | Certara vs. Health Catalyst | Certara vs. HealthStream | Certara vs. Privia Health Group |
| National Research vs. Omega Flex | National Research vs. NI Holdings | National Research vs. PC Connection | National Research vs. Northrim BanCorp |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |