Correlation Between Owens Minor and Zynex

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

By analyzing existing cross correlation between Owens Minor and Zynex Inc, you can compare the effects of market volatilities on Owens Minor and Zynex 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 Owens Minor with a short position of Zynex. Check out your portfolio center. Please also check ongoing floating volatility patterns of Owens Minor and Zynex.

Diversification Opportunities for Owens Minor and Zynex

0.73

Correlation Coefficient

Owens Minor  Zynex

Poor diversification

The 3 months correlation between Owens and Zynex is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Owens Minor and Zynex Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zynex Inc and Owens Minor 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 Owens Minor are associated (or correlated) with Zynex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zynex Inc has no effect on the direction of Owens Minor i.e., Owens Minor and Zynex go up and down completely randomly.

Pair Corralation between Owens Minor and Zynex

Considering the 90-day investment horizon Owens Minor is expected to under-perform the Zynex. In addition to that, Owens Minor is 2.56 times more volatile than Zynex Inc. It trades about -0.18 of its total potential returns per unit of risk. Zynex Inc is currently generating about -0.08 per unit of volatility. If you would invest  832.00  in Zynex Inc on November 29, 2024 and sell it today you would lose (90.00) from holding Zynex Inc or give up 10.82% of portfolio value over 90 days.

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

Owens Minor  vs.  Zynex Inc

Owens Minor

Risk-Adjusted Performance

Very Weak

Over the last 90 days Owens Minor has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unsteady performance in the last few months, the Stock's primary indicators remain fairly strong which may send shares a bit higher in March 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Zynex Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Zynex Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest unsteady performance, the Stock's basic indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the firm traders.

Pair Trading with Owens Minor and Zynex

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

The idea behind Owens Minor and Zynex Inc 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.