Correlation Between Cross Country and Oncology Institute
Can any of the company-specific risk be diversified away by investing in both Cross Country and Oncology Institute 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 Cross Country and Oncology Institute into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cross Country Healthcare and Oncology Institute, you can compare the effects of market volatilities on Cross Country and Oncology Institute 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 Cross Country with a short position of Oncology Institute. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cross Country and Oncology Institute.
Diversification Opportunities for Cross Country and Oncology Institute
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cross and Oncology is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Cross Country Healthcare and Oncology Institute in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oncology Institute and Cross Country 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 Cross Country Healthcare are associated (or correlated) with Oncology Institute. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oncology Institute has no effect on the direction of Cross Country i.e., Cross Country and Oncology Institute go up and down completely randomly.
Pair Corralation between Cross Country and Oncology Institute
Given the investment horizon of 90 days Cross Country Healthcare is expected to under-perform the Oncology Institute. But the stock apears to be less risky and, when comparing its historical volatility, Cross Country Healthcare is 1.44 times less risky than Oncology Institute. The stock trades about -0.04 of its potential returns per unit of risk. The Oncology Institute is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 369.00 in Oncology Institute on August 21, 2025 and sell it today you would earn a total of 8.00 from holding Oncology Institute or generate 2.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cross Country Healthcare vs. Oncology Institute
Performance |
| Timeline |
| Cross Country Healthcare |
| Oncology Institute |
Cross Country and Oncology Institute Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cross Country and Oncology Institute
The main advantage of trading using opposite Cross Country and Oncology Institute positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cross Country position performs unexpectedly, Oncology Institute 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 Oncology Institute will offset losses from the drop in Oncology Institute's long position.| Cross Country vs. Oncology Institute | Cross Country vs. Enhabit | Cross Country vs. Auna SA | Cross Country vs. SurModics |
| Oncology Institute vs. Enhabit | Oncology Institute vs. Auna SA | Oncology Institute vs. Sonida Senior Living | Oncology Institute vs. Cross Country Healthcare |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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