Correlation Between Oncology Institute and Select Medical
Can any of the company-specific risk be diversified away by investing in both Oncology Institute and Select Medical 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 Select Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Oncology Institute and Select Medical Holdings, you can compare the effects of market volatilities on Oncology Institute and Select Medical 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 Select Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oncology Institute and Select Medical.
Diversification Opportunities for Oncology Institute and Select Medical
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Oncology and Select is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding The Oncology Institute and Select Medical Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Select Medical Holdings 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 The Oncology Institute are associated (or correlated) with Select Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Select Medical Holdings has no effect on the direction of Oncology Institute i.e., Oncology Institute and Select Medical go up and down completely randomly.
Pair Corralation between Oncology Institute and Select Medical
Assuming the 90 days horizon The Oncology Institute is expected to generate 6.11 times more return on investment than Select Medical. However, Oncology Institute is 6.11 times more volatile than Select Medical Holdings. It trades about 0.14 of its potential returns per unit of risk. Select Medical Holdings is currently generating about 0.16 per unit of risk. If you would invest 1.01 in The Oncology Institute on September 4, 2024 and sell it today you would earn a total of 0.21 from holding The Oncology Institute or generate 20.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 90.48% |
| Values | Daily Returns |
The Oncology Institute vs. Select Medical Holdings
Performance |
| Timeline |
| The Oncology Institute |
| Select Medical Holdings |
Oncology Institute and Select Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oncology Institute and Select Medical
The main advantage of trading using opposite Oncology Institute and Select Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oncology Institute position performs unexpectedly, Select Medical 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 Select Medical will offset losses from the drop in Select Medical's long position.| Oncology Institute vs. Oncology Institute | Oncology Institute vs. P3 Health Partners | Oncology Institute vs. Talkspace | Oncology Institute vs. Surrozen Warrant |
| Select Medical vs. The Ensign Group | Select Medical vs. Encompass Health Corp | Select Medical vs. InnovAge Holding Corp | Select Medical vs. Enhabit |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |