Correlation Between Weibo Corp and RadNet
Can any of the company-specific risk be diversified away by investing in both Weibo Corp and RadNet 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 Weibo Corp and RadNet into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Weibo Corp and RadNet Inc, you can compare the effects of market volatilities on Weibo Corp and RadNet 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 Weibo Corp with a short position of RadNet. Check out your portfolio center. Please also check ongoing floating volatility patterns of Weibo Corp and RadNet.
Diversification Opportunities for Weibo Corp and RadNet
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Weibo and RadNet is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Weibo Corp and RadNet Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RadNet Inc and Weibo Corp 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 Weibo Corp are associated (or correlated) with RadNet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RadNet Inc has no effect on the direction of Weibo Corp i.e., Weibo Corp and RadNet go up and down completely randomly.
Pair Corralation between Weibo Corp and RadNet
Allowing for the 90-day total investment horizon Weibo Corp is expected to generate 1.26 times more return on investment than RadNet. However, Weibo Corp is 1.26 times more volatile than RadNet Inc. It trades about 0.12 of its potential returns per unit of risk. RadNet Inc is currently generating about 0.15 per unit of risk. If you would invest 735.00 in Weibo Corp on September 3, 2024 and sell it today you would earn a total of 225.00 from holding Weibo Corp or generate 30.61% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Weibo Corp vs. RadNet Inc
Performance |
Timeline |
Weibo Corp |
RadNet Inc |
Weibo Corp and RadNet Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Weibo Corp and RadNet
The main advantage of trading using opposite Weibo Corp and RadNet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Weibo Corp position performs unexpectedly, RadNet 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 RadNet will offset losses from the drop in RadNet's long position.Weibo Corp vs. YY Inc Class | Weibo Corp vs. DouYu International Holdings | Weibo Corp vs. Tencent Music Entertainment | Weibo Corp vs. Autohome |
RadNet vs. Sotera Health Co | RadNet vs. Neogen | RadNet vs. Myriad Genetics | RadNet vs. bioAffinity Technologies Warrant |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
Fundamental Analysis View fundamental data based on most recent published financial statements | |
Volatility Analysis Get historical volatility and risk analysis based on latest market data |