Correlation Between Concord Medical and AMEH Old

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

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

Diversification Opportunities for Concord Medical and AMEH Old

0.0

Correlation Coefficient

Concord Medical  AMEH Old

Pay attention - limited upside

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

Pair Corralation between Concord Medical and AMEH Old

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

Concord Medical Services  vs.  AMEH Old

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.

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.

Pair Trading with Concord Medical and AMEH Old

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

The idea behind Concord Medical Services and AMEH Old 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.