Correlation Between Mednax and Concentra Group

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

By analyzing existing cross correlation between Mednax Inc and Concentra Group Holdings, you can compare the effects of market volatilities on Mednax and Concentra Group 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 Concentra Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mednax and Concentra Group.

Diversification Opportunities for Mednax and Concentra Group

0.58

Correlation Coefficient

Mednax  Concentra Group

Very weak diversification

The 3 months correlation between Mednax and Concentra is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Mednax Inc and Concentra Group Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Concentra Group Holdings 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 Concentra Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Concentra Group Holdings has no effect on the direction of Mednax i.e., Mednax and Concentra Group go up and down completely randomly.

Pair Corralation between Mednax and Concentra Group

Allowing for the 90-day total investment horizon Mednax Inc is expected to generate 1.9 times more return on investment than Concentra Group. However, Mednax is 1.9 times more volatile than Concentra Group Holdings. It trades about 0.07 of its potential returns per unit of risk. Concentra Group Holdings is currently generating about 0.07 per unit of risk. If you would invest  1,321  in Mednax Inc on December 29, 2024 and sell it today you would earn a total of  181.00  from holding Mednax Inc or generate 13.7% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Mednax Inc  vs.  Concentra Group Holdings

Mednax Inc

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Mednax Inc are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady fundamental indicators, Mednax exhibited solid returns over the last few months and may actually be approaching a breakup point.

Concentra Group Holdings

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Concentra Group Holdings are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of very unsteady basic indicators, Concentra Group may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Mednax and Concentra Group

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

The idea behind Mednax Inc and Concentra Group Holdings 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.

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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.