Correlation Between Mednax and Retractable Technologies

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

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

Diversification Opportunities for Mednax and Retractable Technologies

0.27

Correlation Coefficient

Mednax  Retractable Technologies

Modest diversification

The 3 months correlation between Mednax and Retractable is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Mednax Inc and Retractable Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Retractable Technologies 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 Retractable Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Retractable Technologies has no effect on the direction of Mednax i.e., Mednax and Retractable Technologies go up and down completely randomly.

Pair Corralation between Mednax and Retractable Technologies

Allowing for the 90-day total investment horizon Mednax Inc is expected to generate 0.99 times more return on investment than Retractable Technologies. However, Mednax Inc is 1.01 times less risky than Retractable Technologies. It trades about 0.05 of its potential returns per unit of risk. Retractable Technologies is currently generating about 0.02 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  95.00  from holding Mednax Inc or generate 7.19% return on investment over 90 days.

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

Mednax Inc  vs.  Retractable Technologies

Mednax Inc

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Mednax Inc are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady fundamental indicators, Mednax may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Retractable Technologies

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Retractable Technologies are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable basic indicators, Retractable Technologies is not utilizing all of its potentials. The newest stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Mednax and Retractable Technologies

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

The idea behind Mednax Inc and Retractable Technologies 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.