Correlation Between Concord Medical and Simulations Plus

Can any of the company-specific risk be diversified away by investing in both Concord Medical and Simulations Plus 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 Simulations Plus 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 Simulations Plus, you can compare the effects of market volatilities on Concord Medical and Simulations Plus 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 Simulations Plus. Check out your portfolio center. Please also check ongoing floating volatility patterns of Concord Medical and Simulations Plus.

Diversification Opportunities for Concord Medical and Simulations Plus

0.93

Correlation Coefficient

Concord Medical  Simulations Plus

Almost no diversification

The 3 months correlation between Concord and Simulations is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Concord Medical Services and Simulations Plus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Simulations Plus 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 Simulations Plus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Simulations Plus has no effect on the direction of Concord Medical i.e., Concord Medical and Simulations Plus go up and down completely randomly.

Pair Corralation between Concord Medical and Simulations Plus

Considering the 90-day investment horizon Concord Medical Services is expected to generate 0.94 times more return on investment than Simulations Plus. However, Concord Medical Services is 1.07 times less risky than Simulations Plus. It trades about -0.14 of its potential returns per unit of risk. Simulations Plus is currently generating about -0.19 per unit of risk. If you would invest  841.00  in Concord Medical Services on May 16, 2025 and sell it today you would lose (341.00) from holding Concord Medical Services or give up 40.55% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	100.0%
Values	Daily Returns

Concord Medical Services  vs.  Simulations Plus

Concord Medical Services

Risk-Adjusted Performance

Weakest

Over the last 90 days Concord Medical Services has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's fundamental indicators remain very healthy which may send shares a bit higher in September 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Simulations Plus

Risk-Adjusted Performance

Weakest

Over the last 90 days Simulations Plus has generated negative risk-adjusted returns adding no value to investors with long positions. Even with uncertain performance in the last few months, the Stock's essential indicators remain relatively invariable which may send shares a bit higher in September 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with Concord Medical and Simulations Plus

The main advantage of trading using opposite Concord Medical and Simulations Plus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Concord Medical position performs unexpectedly, Simulations Plus 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 Simulations Plus will offset losses from the drop in Simulations Plus' long position.

The idea behind Concord Medical Services and Simulations Plus 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.