Correlation Between RadNet and GENERAL
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By analyzing existing cross correlation between RadNet Inc and GENERAL DYNAMICS PORATION, you can compare the effects of market volatilities on RadNet and GENERAL 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 GENERAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of RadNet and GENERAL.
Diversification Opportunities for RadNet and GENERAL
Excellent diversification
The 3 months correlation between RadNet and GENERAL is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding RadNet Inc and GENERAL DYNAMICS PORATION in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GENERAL DYNAMICS PORATION 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 GENERAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GENERAL DYNAMICS PORATION has no effect on the direction of RadNet i.e., RadNet and GENERAL go up and down completely randomly.
Pair Corralation between RadNet and GENERAL
Given the investment horizon of 90 days RadNet Inc is expected to generate 9.83 times more return on investment than GENERAL. However, RadNet is 9.83 times more volatile than GENERAL DYNAMICS PORATION. It trades about 0.24 of its potential returns per unit of risk. GENERAL DYNAMICS PORATION is currently generating about -0.3 per unit of risk. If you would invest 6,624 in RadNet Inc on August 25, 2024 and sell it today you would earn a total of 1,580 from holding RadNet Inc or generate 23.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 91.3% |
| Values | Daily Returns |
RadNet Inc vs. GENERAL DYNAMICS PORATION
Performance |
| Timeline |
| RadNet Inc |
| GENERAL DYNAMICS PORATION |
RadNet and GENERAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with RadNet and GENERAL
The main advantage of trading using opposite RadNet and GENERAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if RadNet position performs unexpectedly, GENERAL 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 GENERAL will offset losses from the drop in GENERAL's long position.The idea behind RadNet Inc and GENERAL DYNAMICS PORATION pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| GENERAL vs. RadNet Inc | GENERAL vs. Ameriprise Financial | GENERAL vs. Tscan Therapeutics | GENERAL vs. Viemed Healthcare |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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