Correlation Between Xtant Medical and RadNet

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

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

Diversification Opportunities for Xtant Medical and RadNet

-0.69

Correlation Coefficient

Xtant Medical  RadNet

Excellent diversification

The 3 months correlation between Xtant and RadNet is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Xtant Medical Holdings and RadNet Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RadNet Inc and Xtant Medical 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 Xtant Medical Holdings 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 Xtant Medical i.e., Xtant Medical and RadNet go up and down completely randomly.

Pair Corralation between Xtant Medical and RadNet

Given the investment horizon of 90 days Xtant Medical is expected to generate 4.39 times less return on investment than RadNet. In addition to that, Xtant Medical is 1.88 times more volatile than RadNet Inc. It trades about 0.01 of its total potential returns per unit of risk. RadNet Inc is currently generating about 0.11 per unit of volatility. If you would invest  2,062  in RadNet Inc on October 11, 2024 and sell it today you would earn a total of  5,163  from holding RadNet Inc or generate 250.39% return on investment over 90 days.

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

Xtant Medical Holdings  vs.  RadNet Inc

Xtant Medical Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Xtant Medical Holdings 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 February 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

RadNet Inc

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in RadNet Inc are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, RadNet may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Xtant Medical and RadNet

The main advantage of trading using opposite Xtant Medical and RadNet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xtant Medical 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.

The idea behind Xtant Medical Holdings and RadNet 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.