Correlation Between Universal Health and Concentra Group
Can any of the company-specific risk be diversified away by investing in both Universal Health and Concentra Group 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 Universal Health and Concentra Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Universal Health Services and Concentra Group Holdings, you can compare the effects of market volatilities on Universal Health and Concentra Group 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 Universal Health with a short position of Concentra Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Universal Health and Concentra Group.
Diversification Opportunities for Universal Health and Concentra Group
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Universal and Concentra is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Universal Health Services and Concentra Group Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Concentra Group Holdings and Universal 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 Universal Health Services are associated (or correlated) with Concentra Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Concentra Group Holdings has no effect on the direction of Universal Health i.e., Universal Health and Concentra Group go up and down completely randomly.
Pair Corralation between Universal Health and Concentra Group
Considering the 90-day investment horizon Universal Health Services is expected to generate 0.99 times more return on investment than Concentra Group. However, Universal Health Services is 1.01 times less risky than Concentra Group. It trades about 0.05 of its potential returns per unit of risk. Concentra Group Holdings is currently generating about 0.0 per unit of risk. If you would invest 18,448 in Universal Health Services on September 2, 2024 and sell it today you would earn a total of 2,052 from holding Universal Health Services or generate 11.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 72.22% |
| Values | Daily Returns |
Universal Health Services vs. Concentra Group Holdings
Performance |
| Timeline |
| Universal Health Services |
| Concentra Group Holdings |
Universal Health and Concentra Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Universal Health and Concentra Group
The main advantage of trading using opposite Universal Health and Concentra Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Universal Health position performs unexpectedly, Concentra Group 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 Concentra Group will offset losses from the drop in Concentra Group's long position.| Universal Health vs. The Ensign Group | Universal Health vs. Addus HomeCare | Universal Health vs. Encompass Health Corp | Universal Health vs. Surgery Partners |
| Concentra Group vs. Vindicator Silver Lead Mining | Concentra Group vs. Q2 Holdings | Concentra Group vs. Western Sierra Mining | Concentra Group vs. National Beverage 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |