Correlation Between Aesthetic Medical and Ensign
Can any of the company-specific risk be diversified away by investing in both Aesthetic Medical and Ensign 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 Aesthetic Medical and Ensign into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aesthetic Medical Intl and The Ensign Group, you can compare the effects of market volatilities on Aesthetic Medical and Ensign 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 Aesthetic Medical with a short position of Ensign. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aesthetic Medical and Ensign.
Diversification Opportunities for Aesthetic Medical and Ensign
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Aesthetic and Ensign is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Aesthetic Medical Intl and The Ensign Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ensign Group and Aesthetic Medical 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 Aesthetic Medical Intl are associated (or correlated) with Ensign. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ensign Group has no effect on the direction of Aesthetic Medical i.e., Aesthetic Medical and Ensign go up and down completely randomly.
Pair Corralation between Aesthetic Medical and Ensign
If you would invest 11,643 in The Ensign Group on November 9, 2024 and sell it today you would earn a total of 1,948 from holding The Ensign Group or generate 16.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Aesthetic Medical Intl vs. The Ensign Group
Performance |
| Timeline |
| Aesthetic Medical Intl |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| Ensign Group |
Aesthetic Medical and Ensign Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aesthetic Medical and Ensign
The main advantage of trading using opposite Aesthetic Medical and Ensign positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aesthetic Medical position performs unexpectedly, Ensign 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 Ensign will offset losses from the drop in Ensign's long position.| Aesthetic Medical vs. Jack Nathan Medical | Aesthetic Medical vs. Medical Facilities | Aesthetic Medical vs. Fresenius SE Co | Aesthetic Medical vs. Ramsay Health Care |
| Ensign vs. Enhabit | Ensign vs. Pennant Group | Ensign vs. InnovAge Holding Corp | Ensign vs. National HealthCare |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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