Correlation Between Kestra Medical and National Research

Can any of the company-specific risk be diversified away by investing in both Kestra Medical and National Research 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 Kestra Medical and National Research into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Kestra Medical Technologies, and National Research Corp, you can compare the effects of market volatilities on Kestra Medical and National Research 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 Kestra Medical with a short position of National Research. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kestra Medical and National Research.

Diversification Opportunities for Kestra Medical and National Research

-0.55

Correlation Coefficient

Kestra Medical  National Research

Excellent diversification

The 3 months correlation between Kestra and National is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Kestra Medical Technologies, and National Research Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on National Research Corp and Kestra 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 Kestra Medical Technologies, are associated (or correlated) with National Research. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of National Research Corp has no effect on the direction of Kestra Medical i.e., Kestra Medical and National Research go up and down completely randomly.

Pair Corralation between Kestra Medical and National Research

Given the investment horizon of 90 days Kestra Medical Technologies, is expected to under-perform the National Research. In addition to that, Kestra Medical is 1.45 times more volatile than National Research Corp. It trades about -0.11 of its total potential returns per unit of risk. National Research Corp is currently generating about 0.04 per unit of volatility. If you would invest  1,299  in National Research Corp on May 7, 2025 and sell it today you would earn a total of  67.00  from holding National Research Corp or generate 5.16% return on investment over 90 days.

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

Kestra Medical Technologies,  vs.  National Research Corp

Kestra Medical Techn

Risk-Adjusted Performance

Weakest

Over the last 90 days Kestra Medical Technologies, has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in September 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

National Research Corp

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in National Research Corp are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of rather unfluctuating basic indicators, National Research may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Kestra Medical and National Research

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

The idea behind Kestra Medical Technologies, and National Research Corp 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.

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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.