Correlation Between R1 RCM and NewGenIvf Group

Can any of the company-specific risk be diversified away by investing in both R1 RCM and NewGenIvf 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 R1 RCM and NewGenIvf Group into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between R1 RCM Inc and NewGenIvf Group Limited, you can compare the effects of market volatilities on R1 RCM and NewGenIvf 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 R1 RCM with a short position of NewGenIvf Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of R1 RCM and NewGenIvf Group.

Diversification Opportunities for R1 RCM and NewGenIvf Group

0.68

Correlation Coefficient

R1 RCM  NewGenIvf Group

Poor diversification

The 3 months correlation between RCM and NewGenIvf is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding R1 RCM Inc and NewGenIvf Group Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NewGenIvf Group and R1 RCM 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 R1 RCM Inc are associated (or correlated) with NewGenIvf Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NewGenIvf Group has no effect on the direction of R1 RCM i.e., R1 RCM and NewGenIvf Group go up and down completely randomly.

Pair Corralation between R1 RCM and NewGenIvf Group

Considering the 90-day investment horizon R1 RCM is expected to generate 14.72 times less return on investment than NewGenIvf Group. But when comparing it to its historical volatility, R1 RCM Inc is 16.02 times less risky than NewGenIvf Group. It trades about 0.15 of its potential returns per unit of risk. NewGenIvf Group Limited is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest  4.88  in NewGenIvf Group Limited on September 30, 2024 and sell it today you would lose (0.39) from holding NewGenIvf Group Limited or give up 7.99% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	94.29%
Values	Daily Returns

R1 RCM Inc  vs.  NewGenIvf Group Limited

R1 RCM Inc

Risk-Adjusted Performance

0 of 100

Solid

Over the last 90 days R1 RCM Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy fundamental indicators, R1 RCM is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

NewGenIvf Group

Risk-Adjusted Performance

15 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in NewGenIvf Group Limited are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating technical and fundamental indicators, NewGenIvf Group showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with R1 RCM and NewGenIvf Group

The main advantage of trading using opposite R1 RCM and NewGenIvf Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if R1 RCM position performs unexpectedly, NewGenIvf 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 NewGenIvf Group will offset losses from the drop in NewGenIvf Group's long position.

The idea behind R1 RCM Inc and NewGenIvf Group Limited 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.