Correlation Between Owens Minor and China Medicine
Can any of the company-specific risk be diversified away by investing in both Owens Minor and China Medicine 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 Owens Minor and China Medicine into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Owens Minor and China Medicine, you can compare the effects of market volatilities on Owens Minor and China Medicine 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 Owens Minor with a short position of China Medicine. Check out your portfolio center. Please also check ongoing floating volatility patterns of Owens Minor and China Medicine.
Diversification Opportunities for Owens Minor and China Medicine
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Owens and China is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Owens Minor and China Medicine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Medicine and Owens Minor 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 Owens Minor are associated (or correlated) with China Medicine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Medicine has no effect on the direction of Owens Minor i.e., Owens Minor and China Medicine go up and down completely randomly.
Pair Corralation between Owens Minor and China Medicine
If you would invest 1,271 in Owens Minor on September 1, 2024 and sell it today you would earn a total of 76.00 from holding Owens Minor or generate 5.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Owens Minor vs. China Medicine
Performance |
| Timeline |
| Owens Minor |
| China Medicine |
Owens Minor and China Medicine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Owens Minor and China Medicine
The main advantage of trading using opposite Owens Minor and China Medicine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Owens Minor position performs unexpectedly, China Medicine 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 China Medicine will offset losses from the drop in China Medicine's long position.| Owens Minor vs. Henry Schein | Owens Minor vs. Cardinal Health | Owens Minor vs. Zynex Inc | Owens Minor vs. Patterson Companies |
| China Medicine vs. Cardinal Health | China Medicine vs. Henry Schein | China Medicine vs. Owens Minor | China Medicine vs. Patterson Companies |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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