Correlation Between Life Time and RadNet
Can any of the company-specific risk be diversified away by investing in both Life Time and RadNet 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 Life Time and RadNet into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Life Time Group and RadNet Inc, you can compare the effects of market volatilities on Life Time and RadNet 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 Life Time with a short position of RadNet. Check out your portfolio center. Please also check ongoing floating volatility patterns of Life Time and RadNet.
Diversification Opportunities for Life Time and RadNet
Good diversification
The 3 months correlation between Life and RadNet is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Life Time Group and RadNet Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RadNet Inc and Life Time 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 Life Time Group are associated (or correlated) with RadNet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RadNet Inc has no effect on the direction of Life Time i.e., Life Time and RadNet go up and down completely randomly.
Pair Corralation between Life Time and RadNet
Considering the 90-day investment horizon Life Time is expected to generate 1.83 times less return on investment than RadNet. In addition to that, Life Time is 1.11 times more volatile than RadNet Inc. It trades about 0.06 of its total potential returns per unit of risk. RadNet Inc is currently generating about 0.13 per unit of volatility. If you would invest 1,881 in RadNet Inc on September 14, 2024 and sell it today you would earn a total of 5,965 from holding RadNet Inc or generate 317.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Life Time Group vs. RadNet Inc
Performance |
| Timeline |
| Life Time Group |
| RadNet Inc |
Life Time and RadNet Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Life Time and RadNet
The main advantage of trading using opposite Life Time and RadNet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Life Time position performs unexpectedly, RadNet 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 RadNet will offset losses from the drop in RadNet's long position.| Life Time vs. Bowlero Corp | Life Time vs. Planet Fitness | Life Time vs. JAKKS Pacific | Life Time vs. Xponential Fitness |
| RadNet vs. Sotera Health Co | RadNet vs. Neogen | RadNet vs. Myriad Genetics | RadNet vs. bioAffinity Technologies Warrant |
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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