Correlation Between Outset Medical and Concentra Group
Can any of the company-specific risk be diversified away by investing in both Outset Medical and Concentra Group 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 Outset Medical and Concentra Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Outset Medical and Concentra Group Holdings, you can compare the effects of market volatilities on Outset Medical and Concentra Group 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 Outset Medical with a short position of Concentra Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Outset Medical and Concentra Group.
Diversification Opportunities for Outset Medical and Concentra Group
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Outset and Concentra is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Outset Medical and Concentra Group Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Concentra Group Holdings and Outset Medical 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 Outset Medical are associated (or correlated) with Concentra Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Concentra Group Holdings has no effect on the direction of Outset Medical i.e., Outset Medical and Concentra Group go up and down completely randomly.
Pair Corralation between Outset Medical and Concentra Group
Allowing for the 90-day total investment horizon Outset Medical is expected to generate 3.5 times more return on investment than Concentra Group. However, Outset Medical is 3.5 times more volatile than Concentra Group Holdings. It trades about 0.25 of its potential returns per unit of risk. Concentra Group Holdings is currently generating about 0.02 per unit of risk. If you would invest 53.00 in Outset Medical on August 24, 2024 and sell it today you would earn a total of 23.00 from holding Outset Medical or generate 43.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Outset Medical vs. Concentra Group Holdings
Performance |
| Timeline |
| Outset Medical |
| Concentra Group Holdings |
Outset Medical and Concentra Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Outset Medical and Concentra Group
The main advantage of trading using opposite Outset Medical and Concentra Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Outset Medical position performs unexpectedly, Concentra Group 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 Concentra Group will offset losses from the drop in Concentra Group's long position.| Outset Medical vs. Inari Medical | Outset Medical vs. Clearpoint Neuro | Outset Medical vs. Inspire Medical Systems | Outset Medical vs. Nevro Corp |
| Concentra Group vs. Emerson Radio | Concentra Group vs. Universal Display | Concentra Group vs. Academy Sports Outdoors | Concentra Group vs. Sonos Inc |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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