Correlation Between AMEH Old and Concord Medical

Can any of the company-specific risk be diversified away by investing in both AMEH Old and Concord Medical 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 AMEH Old and Concord Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between AMEH Old and Concord Medical Services, you can compare the effects of market volatilities on AMEH Old and Concord Medical 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 AMEH Old with a short position of Concord Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of AMEH Old and Concord Medical.

Diversification Opportunities for AMEH Old and Concord Medical

0.0

Correlation Coefficient

AMEH Old  Concord Medical

Pay attention - limited upside

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

Pair Corralation between AMEH Old and Concord Medical

If you would invest  468.00  in Concord Medical Services on December 1, 2024 and sell it today you would earn a total of  51.00  from holding Concord Medical Services or generate 10.9% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

AMEH Old  vs.  Concord Medical Services

AMEH Old

Risk-Adjusted Performance

Very Weak

Over the last 90 days AMEH Old has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong technical and fundamental indicators, AMEH Old is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.

Concord Medical Services

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Concord Medical Services are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of very weak fundamental indicators, Concord Medical displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with AMEH Old and Concord Medical

The main advantage of trading using opposite AMEH Old and Concord Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AMEH Old position performs unexpectedly, Concord Medical 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 Concord Medical will offset losses from the drop in Concord Medical's long position.

The idea behind AMEH Old and Concord Medical Services 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.

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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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.