Correlation Between Henry Schein and Owens Minor
Can any of the company-specific risk be diversified away by investing in both Henry Schein and Owens Minor 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 Henry Schein and Owens Minor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Henry Schein and Owens Minor, you can compare the effects of market volatilities on Henry Schein and Owens Minor 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 Henry Schein with a short position of Owens Minor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Henry Schein and Owens Minor.
Diversification Opportunities for Henry Schein and Owens Minor
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Henry and Owens is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Henry Schein and Owens Minor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Owens Minor and Henry Schein 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 Henry Schein are associated (or correlated) with Owens Minor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Owens Minor has no effect on the direction of Henry Schein i.e., Henry Schein and Owens Minor go up and down completely randomly.
Pair Corralation between Henry Schein and Owens Minor
Given the investment horizon of 90 days Henry Schein is expected to under-perform the Owens Minor. But the stock apears to be less risky and, when comparing its historical volatility, Henry Schein is 2.79 times less risky than Owens Minor. The stock trades about -0.01 of its potential returns per unit of risk. The Owens Minor is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 3,638 in Owens Minor on January 27, 2024 and sell it today you would lose (1,226) from holding Owens Minor or give up 33.7% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Henry Schein vs. Owens Minor
Performance |
| Timeline |
| Henry Schein |
| Owens Minor |
Henry Schein and Owens Minor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Henry Schein and Owens Minor
The main advantage of trading using opposite Henry Schein and Owens Minor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Henry Schein position performs unexpectedly, Owens Minor 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 Owens Minor will offset losses from the drop in Owens Minor's long position.| Henry Schein vs. Owens Minor | Henry Schein vs. Cardinal Health | Henry Schein vs. Zynex Inc | Henry Schein vs. Patterson Companies |
| Owens Minor vs. Henry Schein | Owens Minor vs. Cardinal Health | Owens Minor vs. Zynex Inc | Owens Minor vs. Patterson Companies |
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 AI Investment Finder module to use AI to screen and filter profitable investment opportunities.
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