Correlation Between Henry Schein and Certara
Can any of the company-specific risk be diversified away by investing in both Henry Schein and Certara 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 Certara into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Henry Schein and Certara, you can compare the effects of market volatilities on Henry Schein and Certara 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 Certara. Check out your portfolio center. Please also check ongoing floating volatility patterns of Henry Schein and Certara.
Diversification Opportunities for Henry Schein and Certara
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Henry and Certara is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Henry Schein and Certara in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Certara 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 Certara. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Certara has no effect on the direction of Henry Schein i.e., Henry Schein and Certara go up and down completely randomly.
Pair Corralation between Henry Schein and Certara
Given the investment horizon of 90 days Henry Schein is expected to under-perform the Certara. But the stock apears to be less risky and, when comparing its historical volatility, Henry Schein is 1.84 times less risky than Certara. The stock trades about -0.22 of its potential returns per unit of risk. The Certara is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 1,688 in Certara on February 3, 2024 and sell it today you would earn a total of 73.00 from holding Certara or generate 4.32% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Henry Schein vs. Certara
Performance |
Timeline |
Henry Schein |
Certara |
Henry Schein and Certara Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Henry Schein and Certara
The main advantage of trading using opposite Henry Schein and Certara positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Henry Schein position performs unexpectedly, Certara 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 Certara will offset losses from the drop in Certara's long position.Henry Schein vs. Owens Minor | Henry Schein vs. Cardinal Health | Henry Schein vs. Zynex Inc | Henry Schein vs. Patterson Companies |
Certara vs. Modern Mobility Aids | Certara vs. Nano Mobile Healthcare | Certara vs. National Research Corp | Certara vs. EUDA Health Holdings |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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