Correlation Between Oncology Institute and Jack Nathan

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

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

Diversification Opportunities for Oncology Institute and Jack Nathan

-0.11

Correlation Coefficient

Oncology Institute  Jack Nathan

Good diversification

The 3 months correlation between Oncology and Jack is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Oncology Institute and Jack Nathan Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jack Nathan Medical and Oncology Institute 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 Oncology Institute are associated (or correlated) with Jack Nathan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jack Nathan Medical has no effect on the direction of Oncology Institute i.e., Oncology Institute and Jack Nathan go up and down completely randomly.

Pair Corralation between Oncology Institute and Jack Nathan

Considering the 90-day investment horizon Oncology Institute is expected to under-perform the Jack Nathan. But the stock apears to be less risky and, when comparing its historical volatility, Oncology Institute is 2.08 times less risky than Jack Nathan. The stock trades about -0.13 of its potential returns per unit of risk. The Jack Nathan Medical is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest  1.70  in Jack Nathan Medical on September 2, 2024 and sell it today you would earn a total of  0.60  from holding Jack Nathan Medical or generate 35.29% return on investment over 90 days.

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

Oncology Institute  vs.  Jack Nathan Medical

Oncology Institute

Risk-Adjusted Performance

0 of 100

Very Weak

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

Jack Nathan Medical

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Jack Nathan Medical are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile primary indicators, Jack Nathan reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Oncology Institute and Jack Nathan

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

The idea behind Oncology Institute and Jack Nathan Medical 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.