Correlation Between Mednax and Sanara Medtech
Can any of the company-specific risk be diversified away by investing in both Mednax and Sanara Medtech 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 Sanara Medtech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mednax Inc and Sanara Medtech, you can compare the effects of market volatilities on Mednax and Sanara Medtech 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 Sanara Medtech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mednax and Sanara Medtech.
Diversification Opportunities for Mednax and Sanara Medtech
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Mednax and Sanara is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Mednax Inc and Sanara Medtech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sanara Medtech 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 Sanara Medtech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sanara Medtech has no effect on the direction of Mednax i.e., Mednax and Sanara Medtech go up and down completely randomly.
Pair Corralation between Mednax and Sanara Medtech
Allowing for the 90-day total investment horizon Mednax Inc is expected to under-perform the Sanara Medtech. In addition to that, Mednax is 1.05 times more volatile than Sanara Medtech. It trades about -0.05 of its total potential returns per unit of risk. Sanara Medtech is currently generating about 0.09 per unit of volatility. If you would invest 3,159 in Sanara Medtech on October 20, 2024 and sell it today you would earn a total of 105.00 from holding Sanara Medtech or generate 3.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.0% |
| Values | Daily Returns |
Mednax Inc vs. Sanara Medtech
Performance |
| Timeline |
| Mednax Inc |
| Sanara Medtech |
Mednax and Sanara Medtech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mednax and Sanara Medtech
The main advantage of trading using opposite Mednax and Sanara Medtech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mednax position performs unexpectedly, Sanara Medtech 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 Sanara Medtech will offset losses from the drop in Sanara Medtech's long position.| Mednax vs. Cigna Corp | Mednax vs. Definitive Healthcare Corp | Mednax vs. Edwards Lifesciences Corp | Mednax vs. Guardant Health |
| Sanara Medtech vs. InfuSystems Holdings | Sanara Medtech vs. Pro Dex | Sanara Medtech vs. LeMaitre Vascular | Sanara Medtech vs. Utah Medical Products |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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