Correlation Between Concentra Group and Sapiens International
Can any of the company-specific risk be diversified away by investing in both Concentra Group and Sapiens International 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 Sapiens International 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 Sapiens International, you can compare the effects of market volatilities on Concentra Group and Sapiens International 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 Sapiens International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Concentra Group and Sapiens International.
Diversification Opportunities for Concentra Group and Sapiens International
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Concentra and Sapiens is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Concentra Group Holdings and Sapiens International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sapiens International 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 Sapiens International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sapiens International has no effect on the direction of Concentra Group i.e., Concentra Group and Sapiens International go up and down completely randomly.
Pair Corralation between Concentra Group and Sapiens International
Considering the 90-day investment horizon Concentra Group is expected to generate 1.12 times less return on investment than Sapiens International. But when comparing it to its historical volatility, Concentra Group Holdings is 1.0 times less risky than Sapiens International. It trades about 0.03 of its potential returns per unit of risk. Sapiens International is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 2,153 in Sapiens International on November 1, 2024 and sell it today you would earn a total of 517.00 from holding Sapiens International or generate 24.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 26.17% |
| Values | Daily Returns |
Concentra Group Holdings vs. Sapiens International
Performance |
| Timeline |
| Concentra Group Holdings |
| Sapiens International |
Concentra Group and Sapiens International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Concentra Group and Sapiens International
The main advantage of trading using opposite Concentra Group and Sapiens International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Concentra Group position performs unexpectedly, Sapiens International 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 Sapiens International will offset losses from the drop in Sapiens International's long position.| Concentra Group vs. Artisan Partners Asset | Concentra Group vs. Apogee Therapeutics, Common | Concentra Group vs. Pearson PLC ADR | Concentra Group vs. Elite Education Group |
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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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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