Correlation Between RadNet and Life Time
Can any of the company-specific risk be diversified away by investing in both RadNet and Life Time 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 Life Time into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between RadNet Inc and Life Time Group, you can compare the effects of market volatilities on RadNet and Life Time 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 Life Time. Check out your portfolio center. Please also check ongoing floating volatility patterns of RadNet and Life Time.
Diversification Opportunities for RadNet and Life Time
Pay attention - limited upside
The 3 months correlation between RadNet and Life is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding RadNet Inc and Life Time Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Life Time Group 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 Life Time. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Life Time Group has no effect on the direction of RadNet i.e., RadNet and Life Time go up and down completely randomly.
Pair Corralation between RadNet and Life Time
Given the investment horizon of 90 days RadNet Inc is expected to under-perform the Life Time. In addition to that, RadNet is 1.51 times more volatile than Life Time Group. It trades about -0.47 of its total potential returns per unit of risk. Life Time Group is currently generating about 0.16 per unit of volatility. If you would invest 2,971 in Life Time Group on December 4, 2024 and sell it today you would earn a total of 172.00 from holding Life Time Group or generate 5.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
RadNet Inc vs. Life Time Group
Performance |
| Timeline |
| RadNet Inc |
| Life Time Group |
RadNet and Life Time Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with RadNet and Life Time
The main advantage of trading using opposite RadNet and Life Time positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if RadNet position performs unexpectedly, Life Time 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 Life Time will offset losses from the drop in Life Time's long position.| RadNet vs. Sotera Health Co | RadNet vs. Neogen | RadNet vs. Myriad Genetics | RadNet vs. bioAffinity Technologies Warrant |
| Life Time vs. Chipotle Mexican Grill | Life Time vs. The Wendys Co | Life Time vs. Wingstop | Life Time vs. Shake Shack |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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