Correlation Between RadNet and Anterix

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

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

Diversification Opportunities for RadNet and Anterix

-0.12

Correlation Coefficient

RadNet  Anterix

Good diversification

The 3 months correlation between RadNet and Anterix is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding RadNet Inc and Anterix in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anterix and RadNet 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 RadNet Inc are associated (or correlated) with Anterix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anterix has no effect on the direction of RadNet i.e., RadNet and Anterix go up and down completely randomly.

Pair Corralation between RadNet and Anterix

Given the investment horizon of 90 days RadNet Inc is expected to under-perform the Anterix. But the stock apears to be less risky and, when comparing its historical volatility, RadNet Inc is 2.88 times less risky than Anterix. The stock trades about -0.4 of its potential returns per unit of risk. The Anterix is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest  2,901  in Anterix on December 1, 2024 and sell it today you would earn a total of  999.00  from holding Anterix or generate 34.44% return on investment over 90 days.

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

RadNet Inc  vs.  Anterix

RadNet Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days RadNet Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Anterix

Risk-Adjusted Performance

Modest

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

Pair Trading with RadNet and Anterix

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

The idea behind RadNet Inc and Anterix 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.