Correlation Between Healthcare Solutions and Concord Medical
Can any of the company-specific risk be diversified away by investing in both Healthcare Solutions and Concord Medical 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 Healthcare Solutions and Concord Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Healthcare Solutions Management and Concord Medical Services, you can compare the effects of market volatilities on Healthcare Solutions and Concord Medical 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 Healthcare Solutions with a short position of Concord Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Healthcare Solutions and Concord Medical.
Diversification Opportunities for Healthcare Solutions and Concord Medical
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Healthcare and Concord is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Healthcare Solutions Managemen and Concord Medical Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Concord Medical Services and Healthcare Solutions 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 Healthcare Solutions Management are associated (or correlated) with Concord Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Concord Medical Services has no effect on the direction of Healthcare Solutions i.e., Healthcare Solutions and Concord Medical go up and down completely randomly.
Pair Corralation between Healthcare Solutions and Concord Medical
If you would invest 450.00 in Concord Medical Services on October 24, 2024 and sell it today you would earn a total of 11.00 from holding Concord Medical Services or generate 2.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 5.56% |
| Values | Daily Returns |
Healthcare Solutions Managemen vs. Concord Medical Services
Performance |
| Timeline |
| Healthcare Solutions |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Concord Medical Services |
Healthcare Solutions and Concord Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Healthcare Solutions and Concord Medical
The main advantage of trading using opposite Healthcare Solutions and Concord Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Healthcare Solutions position performs unexpectedly, Concord Medical 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 Concord Medical will offset losses from the drop in Concord Medical's long position.| Healthcare Solutions vs. Concord Medical Services | Healthcare Solutions vs. American Shared Hospital | Healthcare Solutions vs. Sonida Senior Living | Healthcare Solutions vs. Oncology Institute |
| Concord Medical vs. Pennant Group | Concord Medical vs. Encompass Health Corp | Concord Medical vs. Enhabit | Concord Medical vs. National HealthCare |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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