Correlation Between Icad and Raffles Medical
Can any of the company-specific risk be diversified away by investing in both Icad and Raffles 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 Icad and Raffles Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between icad inc and Raffles Medical Group, you can compare the effects of market volatilities on Icad and Raffles 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 Icad with a short position of Raffles Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Icad and Raffles Medical.
Diversification Opportunities for Icad and Raffles Medical
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Icad and Raffles is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding icad inc and Raffles Medical Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Raffles Medical Group and Icad 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 icad inc are associated (or correlated) with Raffles Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Raffles Medical Group has no effect on the direction of Icad i.e., Icad and Raffles Medical go up and down completely randomly.
Pair Corralation between Icad and Raffles Medical
If you would invest 211.00 in icad inc on September 12, 2024 and sell it today you would lose (4.00) from holding icad inc or give up 1.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
icad inc vs. Raffles Medical Group
Performance |
| Timeline |
| icad inc |
| Raffles Medical Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Icad and Raffles Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Icad and Raffles Medical
The main advantage of trading using opposite Icad and Raffles Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Icad position performs unexpectedly, Raffles 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 Raffles Medical will offset losses from the drop in Raffles Medical's long position.The idea behind icad inc and Raffles Medical Group pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Raffles Medical vs. Pennant Group | Raffles Medical vs. Surgery Partners | Raffles Medical vs. The Ensign Group | Raffles Medical vs. Encompass Health Corp |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |