Correlation Between Mednax and Inogen
Can any of the company-specific risk be diversified away by investing in both Mednax and Inogen 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 Inogen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mednax Inc and Inogen Inc, you can compare the effects of market volatilities on Mednax and Inogen 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 Inogen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mednax and Inogen.
Diversification Opportunities for Mednax and Inogen
Very good diversification
The 3 months correlation between Mednax and Inogen is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Mednax Inc and Inogen Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inogen Inc 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 Inogen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inogen Inc has no effect on the direction of Mednax i.e., Mednax and Inogen go up and down completely randomly.
Pair Corralation between Mednax and Inogen
Allowing for the 90-day total investment horizon Mednax Inc is expected to generate 1.15 times more return on investment than Inogen. However, Mednax is 1.15 times more volatile than Inogen Inc. It trades about 0.15 of its potential returns per unit of risk. Inogen Inc is currently generating about 0.06 per unit of risk. If you would invest 1,266 in Mednax Inc on August 31, 2024 and sell it today you would earn a total of 211.00 from holding Mednax Inc or generate 16.67% 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. Inogen Inc
Performance |
| Timeline |
| Mednax Inc |
| Inogen Inc |
Mednax and Inogen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mednax and Inogen
The main advantage of trading using opposite Mednax and Inogen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mednax position performs unexpectedly, Inogen 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 Inogen will offset losses from the drop in Inogen's long position.| Mednax vs. Acadia Healthcare | Mednax vs. Select Medical Holdings | Mednax vs. Universal Health Services | Mednax vs. Prestige Brand Holdings |
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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