Correlation Between XTANT MEDICAL and MEDICAL FACILITIES
Can any of the company-specific risk be diversified away by investing in both XTANT MEDICAL and MEDICAL FACILITIES 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 XTANT MEDICAL and MEDICAL FACILITIES into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between XTANT MEDICAL HLDGS and MEDICAL FACILITIES NEW, you can compare the effects of market volatilities on XTANT MEDICAL and MEDICAL FACILITIES 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 XTANT MEDICAL with a short position of MEDICAL FACILITIES. Check out your portfolio center. Please also check ongoing floating volatility patterns of XTANT MEDICAL and MEDICAL FACILITIES.
Diversification Opportunities for XTANT MEDICAL and MEDICAL FACILITIES
-0.84 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between XTANT and MEDICAL is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding XTANT MEDICAL HLDGS and MEDICAL FACILITIES NEW in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MEDICAL FACILITIES NEW and XTANT MEDICAL 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 XTANT MEDICAL HLDGS are associated (or correlated) with MEDICAL FACILITIES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MEDICAL FACILITIES NEW has no effect on the direction of XTANT MEDICAL i.e., XTANT MEDICAL and MEDICAL FACILITIES go up and down completely randomly.
Pair Corralation between XTANT MEDICAL and MEDICAL FACILITIES
Assuming the 90 days horizon XTANT MEDICAL is expected to generate 8.81 times less return on investment than MEDICAL FACILITIES. In addition to that, XTANT MEDICAL is 1.96 times more volatile than MEDICAL FACILITIES NEW. It trades about 0.0 of its total potential returns per unit of risk. MEDICAL FACILITIES NEW is currently generating about 0.07 per unit of volatility. If you would invest 504.00 in MEDICAL FACILITIES NEW on September 28, 2024 and sell it today you would earn a total of 526.00 from holding MEDICAL FACILITIES NEW or generate 104.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
XTANT MEDICAL HLDGS vs. MEDICAL FACILITIES NEW
Performance |
| Timeline |
| XTANT MEDICAL HLDGS |
| MEDICAL FACILITIES NEW |
XTANT MEDICAL and MEDICAL FACILITIES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with XTANT MEDICAL and MEDICAL FACILITIES
The main advantage of trading using opposite XTANT MEDICAL and MEDICAL FACILITIES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XTANT MEDICAL position performs unexpectedly, MEDICAL FACILITIES 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 MEDICAL FACILITIES will offset losses from the drop in MEDICAL FACILITIES's long position.| XTANT MEDICAL vs. CVR Medical Corp | XTANT MEDICAL vs. RETAIL FOOD GROUP | XTANT MEDICAL vs. Clearside Biomedical | XTANT MEDICAL vs. Vastned Retail NV |
| MEDICAL FACILITIES vs. Ramsay Health Care | MEDICAL FACILITIES vs. Medicover AB | MEDICAL FACILITIES vs. Charoen Pokphand Foods |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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