Correlation Between Zynex and McKesson

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

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

Diversification Opportunities for Zynex and McKesson

-0.82

Correlation Coefficient

Zynex  McKesson

Pay attention - limited upside

The 3 months correlation between Zynex and McKesson is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding Zynex Inc and McKesson in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on McKesson and Zynex 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 Zynex Inc are associated (or correlated) with McKesson. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of McKesson has no effect on the direction of Zynex i.e., Zynex and McKesson go up and down completely randomly.

Pair Corralation between Zynex and McKesson

Given the investment horizon of 90 days Zynex Inc is expected to under-perform the McKesson. In addition to that, Zynex is 6.03 times more volatile than McKesson. It trades about -0.23 of its total potential returns per unit of risk. McKesson is currently generating about 0.22 per unit of volatility. If you would invest  57,012  in McKesson on December 29, 2024 and sell it today you would earn a total of  9,794  from holding McKesson or generate 17.18% return on investment over 90 days.

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

Zynex Inc  vs.  McKesson

Zynex Inc

Risk-Adjusted Performance

Very Weak

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

McKesson

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in McKesson are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. Despite quite inconsistent fundamental indicators, McKesson disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Zynex and McKesson

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

The idea behind Zynex Inc and McKesson 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.