Correlation Between RadNet and Aspen Insurance
Can any of the company-specific risk be diversified away by investing in both RadNet and Aspen Insurance 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 RadNet and Aspen Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between RadNet Inc and Aspen Insurance Holdings, you can compare the effects of market volatilities on RadNet and Aspen Insurance 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 RadNet with a short position of Aspen Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of RadNet and Aspen Insurance.
Diversification Opportunities for RadNet and Aspen Insurance
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between RadNet and Aspen is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding RadNet Inc and Aspen Insurance Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aspen Insurance Holdings and RadNet 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 RadNet Inc are associated (or correlated) with Aspen Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aspen Insurance Holdings has no effect on the direction of RadNet i.e., RadNet and Aspen Insurance go up and down completely randomly.
Pair Corralation between RadNet and Aspen Insurance
Given the investment horizon of 90 days RadNet Inc is expected to generate 2.63 times more return on investment than Aspen Insurance. However, RadNet is 2.63 times more volatile than Aspen Insurance Holdings. It trades about 0.09 of its potential returns per unit of risk. Aspen Insurance Holdings is currently generating about 0.07 per unit of risk. If you would invest 6,105 in RadNet Inc on September 3, 2024 and sell it today you would earn a total of 2,071 from holding RadNet Inc or generate 33.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
RadNet Inc vs. Aspen Insurance Holdings
Performance |
| Timeline |
| RadNet Inc |
| Aspen Insurance Holdings |
RadNet and Aspen Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with RadNet and Aspen Insurance
The main advantage of trading using opposite RadNet and Aspen Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if RadNet position performs unexpectedly, Aspen Insurance 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 Aspen Insurance will offset losses from the drop in Aspen Insurance's long position.| RadNet vs. Sotera Health Co | RadNet vs. Neogen | RadNet vs. Myriad Genetics | RadNet vs. bioAffinity Technologies Warrant |
| Aspen Insurance vs. Aspen Insurance Holdings | Aspen Insurance vs. Selective Insurance Group | Aspen Insurance vs. The Allstate | Aspen Insurance vs. AmTrust Financial Services |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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