Correlation Between Oncology Institute and Cano Health
Can any of the company-specific risk be diversified away by investing in both Oncology Institute and Cano Health 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 Oncology Institute and Cano Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oncology Institute and Cano Health, you can compare the effects of market volatilities on Oncology Institute and Cano Health 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 Oncology Institute with a short position of Cano Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oncology Institute and Cano Health.
Diversification Opportunities for Oncology Institute and Cano Health
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Oncology and Cano is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Oncology Institute and Cano Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cano Health and Oncology Institute 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 Oncology Institute are associated (or correlated) with Cano Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cano Health has no effect on the direction of Oncology Institute i.e., Oncology Institute and Cano Health go up and down completely randomly.
Pair Corralation between Oncology Institute and Cano Health
Considering the 90-day investment horizon Oncology Institute is expected to under-perform the Cano Health. But the stock apears to be less risky and, when comparing its historical volatility, Oncology Institute is 1.09 times less risky than Cano Health. The stock trades about -0.02 of its potential returns per unit of risk. The Cano Health is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 209.00 in Cano Health on August 24, 2024 and sell it today you would lose (72.00) from holding Cano Health or give up 34.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 32.06% |
| Values | Daily Returns |
Oncology Institute vs. Cano Health
Performance |
| Timeline |
| Oncology Institute |
| Cano Health |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Oncology Institute and Cano Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oncology Institute and Cano Health
The main advantage of trading using opposite Oncology Institute and Cano Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oncology Institute position performs unexpectedly, Cano Health 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 Cano Health will offset losses from the drop in Cano Health's long position.| Oncology Institute vs. Ramsay Health Care | Oncology Institute vs. Medical Facilities | Oncology Institute vs. Jack Nathan Medical | Oncology Institute vs. Fresenius SE Co |
| Cano Health vs. Oncology Institute | Cano Health vs. Lifestance Health Group | Cano Health vs. agilon health | Cano Health vs. Pennant Group |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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