Correlation Between Universal Health and Daxor

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

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

Diversification Opportunities for Universal Health and Daxor

0.91

Correlation Coefficient

Universal Health  Daxor

Almost no diversification

The 3 months correlation between Universal and Daxor is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Universal Health Services and Daxor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Daxor and Universal Health 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 Universal Health Services are associated (or correlated) with Daxor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Daxor has no effect on the direction of Universal Health i.e., Universal Health and Daxor go up and down completely randomly.

Pair Corralation between Universal Health and Daxor

Considering the 90-day investment horizon Universal Health is expected to generate 1.33 times less return on investment than Daxor. But when comparing it to its historical volatility, Universal Health Services is 2.86 times less risky than Daxor. It trades about 0.3 of its potential returns per unit of risk. Daxor is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest  966.00  in Daxor on August 3, 2025 and sell it today you would earn a total of  367.00  from holding Daxor or generate 37.99% return on investment over 90 days.

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

Universal Health Services  vs.  Daxor

Universal Health Services

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Universal Health Services are ranked lower than 24 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile technical indicators, Universal Health unveiled solid returns over the last few months and may actually be approaching a breakup point.

Daxor

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Daxor are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Even with relatively conflicting basic indicators, Daxor reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Universal Health and Daxor

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

The idea behind Universal Health Services and Daxor 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.