Correlation Between RadNet and Star Equity
Can any of the company-specific risk be diversified away by investing in both RadNet and Star Equity 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 Star Equity into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between RadNet Inc and Star Equity Holdings, you can compare the effects of market volatilities on RadNet and Star Equity 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 Star Equity. Check out your portfolio center. Please also check ongoing floating volatility patterns of RadNet and Star Equity.
Diversification Opportunities for RadNet and Star Equity
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between RadNet and Star is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding RadNet Inc and Star Equity Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Star Equity 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 Star Equity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Star Equity Holdings has no effect on the direction of RadNet i.e., RadNet and Star Equity go up and down completely randomly.
Pair Corralation between RadNet and Star Equity
Given the investment horizon of 90 days RadNet Inc is expected to generate 0.69 times more return on investment than Star Equity. However, RadNet Inc is 1.45 times less risky than Star Equity. It trades about 0.13 of its potential returns per unit of risk. Star Equity Holdings is currently generating about -0.01 per unit of risk. If you would invest 2,010 in RadNet Inc on September 3, 2024 and sell it today you would earn a total of 6,275 from holding RadNet Inc or generate 312.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
RadNet Inc vs. Star Equity Holdings
Performance |
| Timeline |
| RadNet Inc |
| Star Equity Holdings |
RadNet and Star Equity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with RadNet and Star Equity
The main advantage of trading using opposite RadNet and Star Equity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if RadNet position performs unexpectedly, Star Equity 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 Star Equity will offset losses from the drop in Star Equity's long position.| RadNet vs. Sotera Health Co | RadNet vs. Neogen | RadNet vs. Myriad Genetics | RadNet vs. bioAffinity Technologies Warrant |
| Star Equity vs. Volitionrx | Star Equity vs. Biodesix | Star Equity vs. Fonar | Star Equity vs. Burning Rock Biotech |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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