Correlation Between National Atomic and Centene Corp
Can any of the company-specific risk be diversified away by investing in both National Atomic and Centene Corp 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 National Atomic and Centene Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between National Atomic Co and Centene Corp, you can compare the effects of market volatilities on National Atomic and Centene Corp 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 National Atomic with a short position of Centene Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of National Atomic and Centene Corp.
Diversification Opportunities for National Atomic and Centene Corp
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between National and Centene is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding National Atomic Co and Centene Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Centene Corp and National Atomic 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 National Atomic Co are associated (or correlated) with Centene Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Centene Corp has no effect on the direction of National Atomic i.e., National Atomic and Centene Corp go up and down completely randomly.
Pair Corralation between National Atomic and Centene Corp
Assuming the 90 days trading horizon National Atomic is expected to generate 1.77 times less return on investment than Centene Corp. In addition to that, National Atomic is 1.28 times more volatile than Centene Corp. It trades about 0.09 of its total potential returns per unit of risk. Centene Corp is currently generating about 0.2 per unit of volatility. If you would invest 6,079 in Centene Corp on November 3, 2024 and sell it today you would earn a total of 378.00 from holding Centene Corp or generate 6.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
National Atomic Co vs. Centene Corp
Performance |
| Timeline |
| National Atomic |
| Centene Corp |
National Atomic and Centene Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with National Atomic and Centene Corp
The main advantage of trading using opposite National Atomic and Centene Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if National Atomic position performs unexpectedly, Centene Corp 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 Centene Corp will offset losses from the drop in Centene Corp's long position.| National Atomic vs. Summit Materials Cl | National Atomic vs. JB Hunt Transport | National Atomic vs. Compagnie Plastic Omnium | National Atomic vs. JD Sports Fashion |
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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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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