Correlation Between Icad and Cerner

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

Diversification Opportunities for Icad and Cerner

-0.88
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Icad and Cerner is -0.88. Overlapping area represents the amount of risk that can be diversified away by holding Icad Inc and Cerner Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cerner and Icad 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 Icad Inc are associated (or correlated) with Cerner. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cerner has no effect on the direction of Icad i.e., Icad and Cerner go up and down completely randomly.

Pair Corralation between Icad and Cerner

If you would invest  9,492  in Cerner on July 6, 2022 and sell it today you would earn a total of  0.00  from holding Cerner or generate 0.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthSignificant
Accuracy5.0%
ValuesDaily Returns

Icad Inc  vs.  Cerner Corp.

 Performance (%) 
       Timeline  
Icad Inc 
Icad Performance
0 of 100
Over the last 90 days Icad Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's basic indicators remain rather sound which may send shares a bit higher in November 2022. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Icad Price Channel

Cerner 
Cerner Performance
0 of 100
Over the last 90 days Cerner has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent basic indicators, Cerner is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Icad and Cerner Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Icad and Cerner

The main advantage of trading using opposite Icad and Cerner positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Icad position performs unexpectedly, Cerner 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 Cerner will offset losses from the drop in Cerner's long position.
Icad vs. General Electric
The idea behind Icad Inc and Cerner 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.
Cerner vs. Amazon 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 Probability Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.

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