Correlation Between Mednax and Certara
Can any of the company-specific risk be diversified away by investing in both Mednax and Certara 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 Mednax and Certara into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mednax Inc and Certara, you can compare the effects of market volatilities on Mednax and Certara 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 Mednax with a short position of Certara. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mednax and Certara.
Diversification Opportunities for Mednax and Certara
Very good diversification
The 3 months correlation between Mednax and Certara is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Mednax Inc and Certara in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Certara and Mednax 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 Mednax Inc are associated (or correlated) with Certara. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Certara has no effect on the direction of Mednax i.e., Mednax and Certara go up and down completely randomly.
Pair Corralation between Mednax and Certara
Allowing for the 90-day total investment horizon Mednax Inc is expected to generate 1.08 times more return on investment than Certara. However, Mednax is 1.08 times more volatile than Certara. It trades about 0.02 of its potential returns per unit of risk. Certara is currently generating about -0.04 per unit of risk. If you would invest 1,367 in Mednax Inc on August 28, 2024 and sell it today you would earn a total of 109.00 from holding Mednax Inc or generate 7.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mednax Inc vs. Certara
Performance |
| Timeline |
| Mednax Inc |
| Certara |
Mednax and Certara Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mednax and Certara
The main advantage of trading using opposite Mednax and Certara positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mednax position performs unexpectedly, Certara 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 Certara will offset losses from the drop in Certara's long position.| Mednax vs. Acadia Healthcare | Mednax vs. Select Medical Holdings | Mednax vs. Universal Health Services | Mednax vs. Prestige Brand Holdings |
| Certara vs. HealthStream | Certara vs. National Research Corp | Certara vs. Forian Inc | Certara vs. HealthEquity |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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