Correlation Between Henry Schein and EDAP TMS
Can any of the company-specific risk be diversified away by investing in both Henry Schein and EDAP TMS 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 Henry Schein and EDAP TMS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Henry Schein and EDAP TMS SA, you can compare the effects of market volatilities on Henry Schein and EDAP TMS 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 Henry Schein with a short position of EDAP TMS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Henry Schein and EDAP TMS.
Diversification Opportunities for Henry Schein and EDAP TMS
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Henry and EDAP is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Henry Schein and EDAP TMS SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EDAP TMS SA and Henry Schein 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 Henry Schein are associated (or correlated) with EDAP TMS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EDAP TMS SA has no effect on the direction of Henry Schein i.e., Henry Schein and EDAP TMS go up and down completely randomly.
Pair Corralation between Henry Schein and EDAP TMS
Given the investment horizon of 90 days Henry Schein is expected to generate 0.45 times more return on investment than EDAP TMS. However, Henry Schein is 2.22 times less risky than EDAP TMS. It trades about -0.1 of its potential returns per unit of risk. EDAP TMS SA is currently generating about -0.18 per unit of risk. If you would invest 7,313 in Henry Schein on March 21, 2025 and sell it today you would lose (200.00) from holding Henry Schein or give up 2.73% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Henry Schein vs. EDAP TMS SA
Performance |
| Timeline |
| Henry Schein |
| EDAP TMS SA |
Henry Schein and EDAP TMS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Henry Schein and EDAP TMS
The main advantage of trading using opposite Henry Schein and EDAP TMS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Henry Schein position performs unexpectedly, EDAP TMS 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 EDAP TMS will offset losses from the drop in EDAP TMS's long position.| Henry Schein vs. Owens Minor | Henry Schein vs. Cardinal Health | Henry Schein vs. Zynex Inc | Henry Schein vs. EDAP TMS SA |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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