Correlation Between Henry Schein and Clear Media

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Can any of the company-specific risk be diversified away by investing in both Henry Schein and Clear Media 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 Clear Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Henry Schein and Clear Media Limited, you can compare the effects of market volatilities on Henry Schein and Clear Media 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 Clear Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Henry Schein and Clear Media.

Diversification Opportunities for Henry Schein and Clear Media

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  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Henry and Clear is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Henry Schein and Clear Media Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clear Media Limited 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 Clear Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clear Media Limited has no effect on the direction of Henry Schein i.e., Henry Schein and Clear Media go up and down completely randomly.

Pair Corralation between Henry Schein and Clear Media

If you would invest (100.00) in Clear Media Limited on December 29, 2023 and sell it today you would earn a total of  100.00  from holding Clear Media Limited or generate -100.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

Henry Schein  vs.  Clear Media Limited

 Performance 
       Timeline  
Henry Schein 

Risk-Adjusted Performance

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Over the last 90 days Henry Schein has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound forward indicators, Henry Schein is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.
Clear Media Limited 

Risk-Adjusted Performance

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Low
 
High
Very Weak
Over the last 90 days Clear Media Limited has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable essential indicators, Clear Media is not utilizing all of its potentials. The recent stock price disturbance, may contribute to mid-run losses for the stockholders.

Henry Schein and Clear Media Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Henry Schein and Clear Media

The main advantage of trading using opposite Henry Schein and Clear Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Henry Schein position performs unexpectedly, Clear Media 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 Clear Media will offset losses from the drop in Clear Media's long position.
The idea behind Henry Schein and Clear Media Limited 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 Transaction History module to view history of all your transactions and understand their impact on performance.

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