Correlation Between Venus Concept and Concord Medical

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

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

Diversification Opportunities for Venus Concept and Concord Medical

-0.29

Correlation Coefficient

Venus Concept  Concord Medical

Very good diversification

The 3 months correlation between Venus and Concord is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Venus Concept and Concord Medical Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Concord Medical Services and Venus Concept 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 Venus Concept are associated (or correlated) with Concord Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Concord Medical Services has no effect on the direction of Venus Concept i.e., Venus Concept and Concord Medical go up and down completely randomly.

Pair Corralation between Venus Concept and Concord Medical

Given the investment horizon of 90 days Venus Concept is expected to generate 1.2 times more return on investment than Concord Medical. However, Venus Concept is 1.2 times more volatile than Concord Medical Services. It trades about 0.04 of its potential returns per unit of risk. Concord Medical Services is currently generating about -0.01 per unit of risk. If you would invest  244.00  in Venus Concept on May 5, 2025 and sell it today you would earn a total of  8.00  from holding Venus Concept or generate 3.28% return on investment over 90 days.

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

Venus Concept  vs.  Concord Medical Services

Venus Concept

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Venus Concept are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Venus Concept displayed solid returns over the last few months and may actually be approaching a breakup point.

Concord Medical Services

Risk-Adjusted Performance

Very Weak

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 very healthy fundamental indicators, Concord Medical is not utilizing all of its potentials. The newest stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Venus Concept and Concord Medical

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

The idea behind Venus Concept and Concord Medical Services 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.