Correlation Between Jack Nathan and Concord Medical
Can any of the company-specific risk be diversified away by investing in both Jack Nathan 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 Jack Nathan and Concord Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jack Nathan Medical and Concord Medical Services, you can compare the effects of market volatilities on Jack Nathan 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 Jack Nathan with a short position of Concord Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jack Nathan and Concord Medical.
Diversification Opportunities for Jack Nathan and Concord Medical
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Jack and Concord is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Jack Nathan Medical 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 Jack Nathan 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 Jack Nathan Medical 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 Jack Nathan i.e., Jack Nathan and Concord Medical go up and down completely randomly.
Pair Corralation between Jack Nathan and Concord Medical
Assuming the 90 days horizon Jack Nathan is expected to generate 2.0 times less return on investment than Concord Medical. But when comparing it to its historical volatility, Jack Nathan Medical is 1.41 times less risky than Concord Medical. It trades about 0.02 of its potential returns per unit of risk. Concord Medical Services is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 1,630 in Concord Medical Services on August 25, 2024 and sell it today you would lose (1,186) from holding Concord Medical Services or give up 72.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Jack Nathan Medical vs. Concord Medical Services
Performance |
| Timeline |
| Jack Nathan Medical |
| Concord Medical Services |
Jack Nathan and Concord Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jack Nathan and Concord Medical
The main advantage of trading using opposite Jack Nathan and Concord Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jack Nathan 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.| Jack Nathan vs. IMAC Holdings | Jack Nathan vs. HCA Holdings | Jack Nathan vs. HUMANA INC | Jack Nathan vs. SCOR PK |
| 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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