Correlation Between Patterson Companies and Zynex

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

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

Diversification Opportunities for Patterson Companies and Zynex

-0.75

Correlation Coefficient

Patterson Companies  Zynex

Pay attention - limited upside

The 3 months correlation between Patterson and Zynex is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Patterson Companies and Zynex Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zynex Inc and Patterson Companies 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 Patterson Companies 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 Patterson Companies i.e., Patterson Companies and Zynex go up and down completely randomly.

Pair Corralation between Patterson Companies and Zynex

Given the investment horizon of 90 days Patterson Companies is expected to generate 0.01 times more return on investment than Zynex. However, Patterson Companies is 79.48 times less risky than Zynex. It trades about 0.21 of its potential returns per unit of risk. Zynex Inc is currently generating about -0.23 per unit of risk. If you would invest  3,085  in Patterson Companies on December 29, 2024 and sell it today you would earn a total of  36.00  from holding Patterson Companies or generate 1.17% return on investment over 90 days.

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

Patterson Companies  vs.  Zynex Inc

Patterson Companies

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Patterson Companies are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy fundamental indicators, Patterson Companies is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

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 unsteady performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in April 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with Patterson Companies and Zynex

The main advantage of trading using opposite Patterson Companies and Zynex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Patterson Companies 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 Patterson Companies 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..