Correlation Between IRIDEX and United American

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

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

Diversification Opportunities for IRIDEX and United American

-0.7

Correlation Coefficient

IRIDEX  United American

Excellent diversification

The 3 months correlation between IRIDEX and United is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding IRIDEX and United American Healthcare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on United American Heal and IRIDEX 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 IRIDEX are associated (or correlated) with United American. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of United American Heal has no effect on the direction of IRIDEX i.e., IRIDEX and United American go up and down completely randomly.

Pair Corralation between IRIDEX and United American

If you would invest  206.00  in IRIDEX on September 12, 2024 and sell it today you would lose (32.00) from holding IRIDEX or give up 15.53% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	0.28%
Values	Daily Returns

IRIDEX  vs.  United American Healthcare

IRIDEX

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days IRIDEX has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unfluctuating performance, the Stock's forward indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

United American Heal

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days United American Healthcare has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical indicators, United American is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with IRIDEX and United American

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

The idea behind IRIDEX and United American Healthcare 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.