Correlation Between Owens Minor and Patterson Companies
Can any of the company-specific risk be diversified away by investing in both Owens Minor and Patterson Companies 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 Patterson Companies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Owens Minor and Patterson Companies, you can compare the effects of market volatilities on Owens Minor and Patterson Companies 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 Patterson Companies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Owens Minor and Patterson Companies.
Diversification Opportunities for Owens Minor and Patterson Companies
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Owens and Patterson is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Owens Minor and Patterson Companies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Patterson Companies 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 Patterson Companies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Patterson Companies has no effect on the direction of Owens Minor i.e., Owens Minor and Patterson Companies go up and down completely randomly.
Pair Corralation between Owens Minor and Patterson Companies
Considering the 90-day investment horizon Owens Minor is expected to under-perform the Patterson Companies. In addition to that, Owens Minor is 1.46 times more volatile than Patterson Companies. It trades about -0.06 of its total potential returns per unit of risk. Patterson Companies is currently generating about -0.04 per unit of volatility. If you would invest 2,345 in Patterson Companies on August 24, 2024 and sell it today you would lose (317.00) from holding Patterson Companies or give up 13.52% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Owens Minor vs. Patterson Companies
Performance |
| Timeline |
| Owens Minor |
| Patterson Companies |
Owens Minor and Patterson Companies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Owens Minor and Patterson Companies
The main advantage of trading using opposite Owens Minor and Patterson Companies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Owens Minor position performs unexpectedly, Patterson Companies 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 Patterson Companies will offset losses from the drop in Patterson Companies' long position.| Owens Minor vs. Henry Schein | Owens Minor vs. Cardinal Health | Owens Minor vs. Zynex Inc | Owens Minor vs. Patterson Companies |
| Patterson Companies vs. Owens Minor | Patterson Companies vs. Cardinal Health | Patterson Companies vs. McKesson | Patterson Companies vs. Henry Schein |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |