Correlation Between Henry Schein and Ideanomics
Can any of the company-specific risk be diversified away by investing in both Henry Schein and Ideanomics 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 Henry Schein and Ideanomics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Henry Schein and Ideanomics, you can compare the effects of market volatilities on Henry Schein and Ideanomics 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 Henry Schein with a short position of Ideanomics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Henry Schein and Ideanomics.
Diversification Opportunities for Henry Schein and Ideanomics
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Henry and Ideanomics is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Henry Schein and Ideanomics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ideanomics and Henry Schein 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 Henry Schein are associated (or correlated) with Ideanomics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ideanomics has no effect on the direction of Henry Schein i.e., Henry Schein and Ideanomics go up and down completely randomly.
Pair Corralation between Henry Schein and Ideanomics
Given the investment horizon of 90 days Henry Schein is expected to generate 0.13 times more return on investment than Ideanomics. However, Henry Schein is 7.71 times less risky than Ideanomics. It trades about -0.01 of its potential returns per unit of risk. Ideanomics is currently generating about -0.05 per unit of risk. If you would invest 7,831 in Henry Schein on January 24, 2024 and sell it today you would lose (555.00) from holding Henry Schein or give up 7.09% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Henry Schein vs. Ideanomics
Performance |
Timeline |
Henry Schein |
Ideanomics |
Henry Schein and Ideanomics Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Henry Schein and Ideanomics
The main advantage of trading using opposite Henry Schein and Ideanomics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Henry Schein position performs unexpectedly, Ideanomics 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 Ideanomics will offset losses from the drop in Ideanomics' long position.Henry Schein vs. Owens Minor | Henry Schein vs. Cardinal Health | Henry Schein vs. Zynex Inc | Henry Schein vs. Patterson Companies |
Ideanomics vs. Deere Company | Ideanomics vs. Caterpillar | Ideanomics vs. Lion Electric Corp | Ideanomics vs. Xos Inc |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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