Correlation Between RadNet and Neo Concept
Can any of the company-specific risk be diversified away by investing in both RadNet and Neo Concept 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 Neo Concept into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between RadNet Inc and Neo Concept International Group, you can compare the effects of market volatilities on RadNet and Neo Concept 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 Neo Concept. Check out your portfolio center. Please also check ongoing floating volatility patterns of RadNet and Neo Concept.
Diversification Opportunities for RadNet and Neo Concept
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between RadNet and Neo is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding RadNet Inc and Neo Concept International Grou in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Neo Concept Internat 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 Neo Concept. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Neo Concept Internat has no effect on the direction of RadNet i.e., RadNet and Neo Concept go up and down completely randomly.
Pair Corralation between RadNet and Neo Concept
Given the investment horizon of 90 days RadNet Inc is expected to generate 0.21 times more return on investment than Neo Concept. However, RadNet Inc is 4.85 times less risky than Neo Concept. It trades about 0.13 of its potential returns per unit of risk. Neo Concept International Group is currently generating about -0.06 per unit of risk. If you would invest 3,608 in RadNet Inc on September 4, 2024 and sell it today you would earn a total of 4,456 from holding RadNet Inc or generate 123.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 63.16% |
| Values | Daily Returns |
RadNet Inc vs. Neo Concept International Grou
Performance |
| Timeline |
| RadNet Inc |
| Neo Concept Internat |
RadNet and Neo Concept Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with RadNet and Neo Concept
The main advantage of trading using opposite RadNet and Neo Concept positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if RadNet position performs unexpectedly, Neo Concept 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 Neo Concept will offset losses from the drop in Neo Concept's long position.| RadNet vs. Sotera Health Co | RadNet vs. Neogen | RadNet vs. Myriad Genetics | RadNet vs. bioAffinity Technologies Warrant |
| Neo Concept vs. Cheniere Energy Partners | Neo Concept vs. KNOT Offshore Partners | Neo Concept vs. CenterPoint Energy | Neo Concept vs. Kinetik Holdings |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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