Correlation Between Concord Medical and HEALTHSOUTH Corp

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Concord Medical and HEALTHSOUTH Corp 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 Concord Medical and HEALTHSOUTH Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Concord Medical Services and HEALTHSOUTH Corp, you can compare the effects of market volatilities on Concord Medical and HEALTHSOUTH Corp 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 Concord Medical with a short position of HEALTHSOUTH Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Concord Medical and HEALTHSOUTH Corp.

Diversification Opportunities for Concord Medical and HEALTHSOUTH Corp

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Concord and HEALTHSOUTH is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Concord Medical Services and HEALTHSOUTH Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HEALTHSOUTH Corp and Concord 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 Concord Medical Services are associated (or correlated) with HEALTHSOUTH Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HEALTHSOUTH Corp has no effect on the direction of Concord Medical i.e., Concord Medical and HEALTHSOUTH Corp go up and down completely randomly.

Pair Corralation between Concord Medical and HEALTHSOUTH Corp

If you would invest (100.00) in HEALTHSOUTH Corp on December 29, 2023 and sell it today you would earn a total of  100.00  from holding HEALTHSOUTH Corp or generate -100.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

Concord Medical Services  vs.  HEALTHSOUTH Corp

 Performance 
       Timeline  
Concord Medical Services 

Risk-Adjusted Performance

0 of 100

 
Low
 
High
Very Weak
Over the last 90 days Concord Medical Services has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's fundamental indicators remain very healthy which may send shares a bit higher in April 2024. The recent disarray may also be a sign of long period up-swing for the firm investors.
HEALTHSOUTH Corp 

Risk-Adjusted Performance

0 of 100

 
Low
 
High
Very Weak
Over the last 90 days HEALTHSOUTH Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable essential indicators, HEALTHSOUTH Corp is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.

Concord Medical and HEALTHSOUTH Corp Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Concord Medical and HEALTHSOUTH Corp

The main advantage of trading using opposite Concord Medical and HEALTHSOUTH Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Concord Medical position performs unexpectedly, HEALTHSOUTH Corp 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 HEALTHSOUTH Corp will offset losses from the drop in HEALTHSOUTH Corp's long position.
The idea behind Concord Medical Services and HEALTHSOUTH Corp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.

Other Complementary Tools

Pair Correlation
Compare performance and examine fundamental relationship between any two equity instruments
Volatility Analysis
Get historical volatility and risk analysis based on latest market data
Price Exposure Probability
Analyze equity upside and downside potential for a given time horizon across multiple markets
Portfolio Anywhere
Track or share privately all of your investments from the convenience of any device
Economic Indicators
Top statistical indicators that provide insights into how an economy is performing