Correlation Between Concord Medical and Surgery Partners
Can any of the company-specific risk be diversified away by investing in both Concord Medical and Surgery Partners 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 Concord Medical and Surgery Partners into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Concord Medical Services and Surgery Partners, you can compare the effects of market volatilities on Concord Medical and Surgery Partners 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 Concord Medical with a short position of Surgery Partners. Check out your portfolio center. Please also check ongoing floating volatility patterns of Concord Medical and Surgery Partners.
Diversification Opportunities for Concord Medical and Surgery Partners
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Concord and Surgery is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Concord Medical Services and Surgery Partners in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Surgery Partners and Concord 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 Concord Medical Services are associated (or correlated) with Surgery Partners. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Surgery Partners has no effect on the direction of Concord Medical i.e., Concord Medical and Surgery Partners go up and down completely randomly.
Pair Corralation between Concord Medical and Surgery Partners
Considering the 90-day investment horizon Concord Medical Services is expected to generate 2.76 times more return on investment than Surgery Partners. However, Concord Medical is 2.76 times more volatile than Surgery Partners. It trades about 0.07 of its potential returns per unit of risk. Surgery Partners is currently generating about 0.07 per unit of risk. If you would invest 460.00 in Concord Medical Services on April 22, 2025 and sell it today you would earn a total of 80.00 from holding Concord Medical Services or generate 17.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Concord Medical Services vs. Surgery Partners
Performance |
| Timeline |
| Concord Medical Services |
| Surgery Partners |
Concord Medical and Surgery Partners Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Concord Medical and Surgery Partners
The main advantage of trading using opposite Concord Medical and Surgery Partners positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Concord Medical position performs unexpectedly, Surgery Partners 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 Surgery Partners will offset losses from the drop in Surgery Partners' long position.| Concord Medical vs. Bright Scholar Education | Concord Medical vs. CryoCell International | Concord Medical vs. Encompass Health Corp | Concord Medical vs. Four Seasons Education |
| Surgery Partners vs. Pennant Group | Surgery Partners vs. The Ensign Group | Surgery Partners vs. Encompass Health Corp | Surgery Partners vs. Healthcare Services Group |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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