Correlation Between IKang Healthcare and Tenet Healthcare
Can any of the company-specific risk be diversified away by investing in both IKang Healthcare and Tenet Healthcare 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 IKang Healthcare and Tenet Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between IKang Healthcare Group and Tenet Healthcare, you can compare the effects of market volatilities on IKang Healthcare and Tenet Healthcare 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 IKang Healthcare with a short position of Tenet Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of IKang Healthcare and Tenet Healthcare.
Diversification Opportunities for IKang Healthcare and Tenet Healthcare
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between IKang and Tenet is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding IKang Healthcare Group and Tenet Healthcare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tenet Healthcare and IKang Healthcare 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 IKang Healthcare Group are associated (or correlated) with Tenet Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tenet Healthcare has no effect on the direction of IKang Healthcare i.e., IKang Healthcare and Tenet Healthcare go up and down completely randomly.
Pair Corralation between IKang Healthcare and Tenet Healthcare
If you would invest (100.00) in IKang Healthcare Group on January 27, 2024 and sell it today you would earn a total of 100.00 from holding IKang Healthcare Group or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
IKang Healthcare Group vs. Tenet Healthcare
Performance |
| Timeline |
| IKang Healthcare |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Tenet Healthcare |
IKang Healthcare and Tenet Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IKang Healthcare and Tenet Healthcare
The main advantage of trading using opposite IKang Healthcare and Tenet Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IKang Healthcare position performs unexpectedly, Tenet Healthcare 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 Tenet Healthcare will offset losses from the drop in Tenet Healthcare's long position.| IKang Healthcare vs. Ryanair Holdings PLC | IKang Healthcare vs. JD Sports Fashion | IKang Healthcare vs. Universal Technical Institute | IKang Healthcare vs. United Guardian |
| Tenet Healthcare vs. Acadia Healthcare | Tenet Healthcare vs. HCA Holdings | Tenet Healthcare vs. US Physicalrapy | Tenet Healthcare 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 AI Investment Finder module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |