Correlation Between Concord Medical and Talkspace

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

Diversification Opportunities for Concord Medical and Talkspace

0.82

Correlation Coefficient

Concord Medical  Talkspace

Very poor diversification

The 3 months correlation between Concord and Talkspace is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Concord Medical Services and Talkspace in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Talkspace 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 Talkspace. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Talkspace has no effect on the direction of Concord Medical i.e., Concord Medical and Talkspace go up and down completely randomly.

Pair Corralation between Concord Medical and Talkspace

Considering the 90-day investment horizon Concord Medical Services is expected to under-perform the Talkspace. But the stock apears to be less risky and, when comparing its historical volatility, Concord Medical Services is 1.62 times less risky than Talkspace. The stock trades about -0.11 of its potential returns per unit of risk. The Talkspace is currently generating about -0.06 of returns per unit of risk over similar time horizon. If you would invest  11.00  in Talkspace on May 17, 2025 and sell it today you would lose (4.70) from holding Talkspace or give up 42.73% of portfolio value over 90 days.

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

Concord Medical Services  vs.  Talkspace

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.

Talkspace

Risk-Adjusted Performance

Weakest

Over the last 90 days Talkspace has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's forward-looking signals remain fairly stable which may send shares a bit higher in September 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Pair Trading with Concord Medical and Talkspace

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

The idea behind Concord Medical Services and Talkspace 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.