Correlation Between RadNet and Golden Star
Can any of the company-specific risk be diversified away by investing in both RadNet and Golden Star 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 Golden Star into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between RadNet Inc and Golden Star Acquisition, you can compare the effects of market volatilities on RadNet and Golden Star 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 Golden Star. Check out your portfolio center. Please also check ongoing floating volatility patterns of RadNet and Golden Star.
Diversification Opportunities for RadNet and Golden Star
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between RadNet and Golden is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding RadNet Inc and Golden Star Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Golden Star Acquisition 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 Golden Star. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Golden Star Acquisition has no effect on the direction of RadNet i.e., RadNet and Golden Star go up and down completely randomly.
Pair Corralation between RadNet and Golden Star
Given the investment horizon of 90 days RadNet Inc is expected to generate 1.36 times more return on investment than Golden Star. However, RadNet is 1.36 times more volatile than Golden Star Acquisition. It trades about 0.15 of its potential returns per unit of risk. Golden Star Acquisition is currently generating about 0.05 per unit of risk. If you would invest 6,696 in RadNet Inc on September 5, 2024 and sell it today you would earn a total of 1,390 from holding RadNet Inc or generate 20.76% 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. Golden Star Acquisition
Performance |
| Timeline |
| RadNet Inc |
| Golden Star Acquisition |
RadNet and Golden Star Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with RadNet and Golden Star
The main advantage of trading using opposite RadNet and Golden Star positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if RadNet position performs unexpectedly, Golden Star 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 Golden Star will offset losses from the drop in Golden Star's long position.| RadNet vs. Sotera Health Co | RadNet vs. Neogen | RadNet vs. Myriad Genetics | RadNet vs. bioAffinity Technologies Warrant |
| Golden Star vs. Jutal Offshore Oil | Golden Star vs. JD Sports Fashion | Golden Star vs. RadNet Inc | Golden Star vs. Akanda Corp |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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