Correlation Between Concentra Group and Integral
Can any of the company-specific risk be diversified away by investing in both Concentra Group and Integral 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 Concentra Group and Integral into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Concentra Group Holdings and Integral Ad Science, you can compare the effects of market volatilities on Concentra Group and Integral 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 Concentra Group with a short position of Integral. Check out your portfolio center. Please also check ongoing floating volatility patterns of Concentra Group and Integral.
Diversification Opportunities for Concentra Group and Integral
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Concentra and Integral is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Concentra Group Holdings and Integral Ad Science in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Integral Ad Science and Concentra Group 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 Concentra Group Holdings are associated (or correlated) with Integral. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Integral Ad Science has no effect on the direction of Concentra Group i.e., Concentra Group and Integral go up and down completely randomly.
Pair Corralation between Concentra Group and Integral
Considering the 90-day investment horizon Concentra Group Holdings is expected to generate 0.58 times more return on investment than Integral. However, Concentra Group Holdings is 1.73 times less risky than Integral. It trades about 0.17 of its potential returns per unit of risk. Integral Ad Science is currently generating about -0.06 per unit of risk. If you would invest 2,073 in Concentra Group Holdings on August 31, 2024 and sell it today you would earn a total of 169.00 from holding Concentra Group Holdings or generate 8.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Concentra Group Holdings vs. Integral Ad Science
Performance |
| Timeline |
| Concentra Group Holdings |
| Integral Ad Science |
Concentra Group and Integral Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Concentra Group and Integral
The main advantage of trading using opposite Concentra Group and Integral positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Concentra Group position performs unexpectedly, Integral 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 Integral will offset losses from the drop in Integral's long position.| Concentra Group vs. Acadia Healthcare | Concentra Group vs. Select Medical Holdings | Concentra Group vs. Universal Health Services | Concentra Group vs. Prestige Brand Holdings |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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