Correlation Between RadNet and Contango ORE

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

By analyzing existing cross correlation between RadNet Inc and Contango ORE, you can compare the effects of market volatilities on RadNet and Contango ORE 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 RadNet with a short position of Contango ORE. Check out your portfolio center. Please also check ongoing floating volatility patterns of RadNet and Contango ORE.

Diversification Opportunities for RadNet and Contango ORE

0.38

Correlation Coefficient

RadNet  Contango ORE

Weak diversification

The 3 months correlation between RadNet and Contango is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding RadNet Inc and Contango ORE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Contango ORE and RadNet 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 RadNet Inc are associated (or correlated) with Contango ORE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Contango ORE has no effect on the direction of RadNet i.e., RadNet and Contango ORE go up and down completely randomly.

Pair Corralation between RadNet and Contango ORE

Given the investment horizon of 90 days RadNet is expected to generate 2.2 times less return on investment than Contango ORE. But when comparing it to its historical volatility, RadNet Inc is 1.09 times less risky than Contango ORE. It trades about 0.08 of its potential returns per unit of risk. Contango ORE is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest  1,631  in Contango ORE on May 17, 2025 and sell it today you would earn a total of  577.00  from holding Contango ORE or generate 35.38% return on investment over 90 days.

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

RadNet Inc  vs.  Contango ORE

RadNet Inc

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in RadNet Inc are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unfluctuating basic indicators, RadNet unveiled solid returns over the last few months and may actually be approaching a breakup point.

Contango ORE

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Contango ORE are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of very inconsistent technical and fundamental indicators, Contango ORE displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with RadNet and Contango ORE

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

The idea behind RadNet Inc and Contango ORE 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.