Correlation Between Beyond Air and US Physicalrapy
Can any of the company-specific risk be diversified away by investing in both Beyond Air and US Physicalrapy 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 Beyond Air and US Physicalrapy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Beyond Air and US Physicalrapy, you can compare the effects of market volatilities on Beyond Air and US Physicalrapy 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 Beyond Air with a short position of US Physicalrapy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beyond Air and US Physicalrapy.
Diversification Opportunities for Beyond Air and US Physicalrapy
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Beyond and USPH is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Beyond Air and US Physicalrapy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on US Physicalrapy and Beyond Air 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 Beyond Air are associated (or correlated) with US Physicalrapy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of US Physicalrapy has no effect on the direction of Beyond Air i.e., Beyond Air and US Physicalrapy go up and down completely randomly.
Pair Corralation between Beyond Air and US Physicalrapy
Given the investment horizon of 90 days Beyond Air is expected to generate 1.09 times less return on investment than US Physicalrapy. In addition to that, Beyond Air is 2.08 times more volatile than US Physicalrapy. It trades about 0.09 of its total potential returns per unit of risk. US Physicalrapy is currently generating about 0.2 per unit of volatility. If you would invest 8,220 in US Physicalrapy on August 31, 2024 and sell it today you would earn a total of 1,488 from holding US Physicalrapy or generate 18.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beyond Air vs. US Physicalrapy
Performance |
| Timeline |
| Beyond Air |
| US Physicalrapy |
Beyond Air and US Physicalrapy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beyond Air and US Physicalrapy
The main advantage of trading using opposite Beyond Air and US Physicalrapy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beyond Air position performs unexpectedly, US Physicalrapy 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 US Physicalrapy will offset losses from the drop in US Physicalrapy's long position.| Beyond Air vs. Lucid Diagnostics | Beyond Air vs. Inari Medical | Beyond Air vs. PAVmed Series Z | Beyond Air vs. Clearpoint Neuro |
| US Physicalrapy vs. Acadia Healthcare | US Physicalrapy vs. Tenet Healthcare | US Physicalrapy vs. HCA Holdings | US Physicalrapy vs. DaVita HealthCare Partners |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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