Correlation Between Regional Health and CryoCell International
Can any of the company-specific risk be diversified away by investing in both Regional Health and CryoCell International 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 Regional Health and CryoCell International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Regional Health Properties and CryoCell International, you can compare the effects of market volatilities on Regional Health and CryoCell International 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 Regional Health with a short position of CryoCell International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Regional Health and CryoCell International.
Diversification Opportunities for Regional Health and CryoCell International
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Regional and CryoCell is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Regional Health Properties and CryoCell International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CryoCell International and Regional Health 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 Regional Health Properties are associated (or correlated) with CryoCell International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CryoCell International has no effect on the direction of Regional Health i.e., Regional Health and CryoCell International go up and down completely randomly.
Pair Corralation between Regional Health and CryoCell International
Considering the 90-day investment horizon Regional Health is expected to generate 3.6 times less return on investment than CryoCell International. In addition to that, Regional Health is 1.89 times more volatile than CryoCell International. It trades about 0.04 of its total potential returns per unit of risk. CryoCell International is currently generating about 0.25 per unit of volatility. If you would invest 716.00 in CryoCell International on September 3, 2024 and sell it today you would earn a total of 151.00 from holding CryoCell International or generate 21.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Regional Health Properties vs. CryoCell International
Performance |
| Timeline |
| Regional Health Prop |
| CryoCell International |
Regional Health and CryoCell International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Regional Health and CryoCell International
The main advantage of trading using opposite Regional Health and CryoCell International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Regional Health position performs unexpectedly, CryoCell International 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 CryoCell International will offset losses from the drop in CryoCell International's long position.| Regional Health vs. Ramsay Health Care | Regional Health vs. Jack Nathan Medical | Regional Health vs. Nova Leap Health | Regional Health vs. Fresenius SE Co |
| CryoCell International vs. National HealthCare | CryoCell International vs. InnovAge Holding Corp | CryoCell International vs. Pennant Group | CryoCell International vs. Encompass Health 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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