Correlation Between Paragon 28 and Nutex Health
Can any of the company-specific risk be diversified away by investing in both Paragon 28 and Nutex Health 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 Paragon 28 and Nutex Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Paragon 28 and Nutex Health, you can compare the effects of market volatilities on Paragon 28 and Nutex Health 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 Paragon 28 with a short position of Nutex Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Paragon 28 and Nutex Health.
Diversification Opportunities for Paragon 28 and Nutex Health
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Paragon and Nutex is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Paragon 28 and Nutex Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nutex Health and Paragon 28 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 Paragon 28 are associated (or correlated) with Nutex Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nutex Health has no effect on the direction of Paragon 28 i.e., Paragon 28 and Nutex Health go up and down completely randomly.
Pair Corralation between Paragon 28 and Nutex Health
Considering the 90-day investment horizon Paragon 28 is expected to generate 215.05 times less return on investment than Nutex Health. But when comparing it to its historical volatility, Paragon 28 is 29.27 times less risky than Nutex Health. It trades about 0.02 of its potential returns per unit of risk. Nutex Health is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 4,786 in Nutex Health on December 1, 2024 and sell it today you would earn a total of 704.00 from holding Nutex Health or generate 14.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Paragon 28 vs. Nutex Health
Performance |
| Timeline |
| Paragon 28 |
| Nutex Health |
Paragon 28 and Nutex Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Paragon 28 and Nutex Health
The main advantage of trading using opposite Paragon 28 and Nutex Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Paragon 28 position performs unexpectedly, Nutex Health 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 Nutex Health will offset losses from the drop in Nutex Health's long position.| Paragon 28 vs. Pulmonx Corp | Paragon 28 vs. Iradimed Co | Paragon 28 vs. Orthofix Medical | Paragon 28 vs. Neuropace |
| Nutex Health vs. FOXO Technologies | Nutex Health vs. Heartbeam | Nutex Health vs. EUDA Health Holdings | Nutex Health vs. Privia Health Group |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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