Correlation Between Mednax and American Shared
Can any of the company-specific risk be diversified away by investing in both Mednax and American Shared 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 Mednax and American Shared into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mednax Inc and American Shared Hospital, you can compare the effects of market volatilities on Mednax and American Shared 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 Mednax with a short position of American Shared. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mednax and American Shared.
Diversification Opportunities for Mednax and American Shared
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Mednax and American is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Mednax Inc and American Shared Hospital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Shared Hospital and Mednax 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 Mednax Inc are associated (or correlated) with American Shared. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Shared Hospital has no effect on the direction of Mednax i.e., Mednax and American Shared go up and down completely randomly.
Pair Corralation between Mednax and American Shared
Allowing for the 90-day total investment horizon Mednax Inc is expected to under-perform the American Shared. In addition to that, Mednax is 1.17 times more volatile than American Shared Hospital. It trades about -0.05 of its total potential returns per unit of risk. American Shared Hospital is currently generating about 0.02 per unit of volatility. If you would invest 280.00 in American Shared Hospital on December 30, 2023 and sell it today you would earn a total of 15.00 from holding American Shared Hospital or generate 5.36% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Mednax Inc vs. American Shared Hospital
Performance |
Timeline |
Mednax Inc |
American Shared Hospital |
Mednax and American Shared Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Mednax and American Shared
The main advantage of trading using opposite Mednax and American Shared positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mednax position performs unexpectedly, American Shared 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 American Shared will offset losses from the drop in American Shared's long position.Mednax vs. ModivCare | Mednax vs. Enhabit | Mednax vs. Regional Health Properties | Mednax vs. The Oncology Institute |
American Shared vs. ModivCare | American Shared vs. Enhabit | American Shared vs. Regional Health Properties | American Shared vs. The Oncology Institute |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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