Correlation Between American Shared and Joint Corp
Can any of the company-specific risk be diversified away by investing in both American Shared and Joint Corp 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 American Shared and Joint Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American Shared Hospital and The Joint Corp, you can compare the effects of market volatilities on American Shared and Joint Corp 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 American Shared with a short position of Joint Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Shared and Joint Corp.
Diversification Opportunities for American Shared and Joint Corp
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between American and Joint is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding American Shared Hospital and The Joint Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Joint Corp and American Shared 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 American Shared Hospital are associated (or correlated) with Joint Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Joint Corp has no effect on the direction of American Shared i.e., American Shared and Joint Corp go up and down completely randomly.
Pair Corralation between American Shared and Joint Corp
Considering the 90-day investment horizon American Shared Hospital is expected to generate 1.15 times more return on investment than Joint Corp. However, American Shared is 1.15 times more volatile than The Joint Corp. It trades about 0.06 of its potential returns per unit of risk. The Joint Corp is currently generating about 0.05 per unit of risk. If you would invest 315.00 in American Shared Hospital on August 31, 2024 and sell it today you would earn a total of 10.00 from holding American Shared Hospital or generate 3.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
American Shared Hospital vs. The Joint Corp
Performance |
| Timeline |
| American Shared Hospital |
| Joint Corp |
American Shared and Joint Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Shared and Joint Corp
The main advantage of trading using opposite American Shared and Joint Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Shared position performs unexpectedly, Joint Corp 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 Joint Corp will offset losses from the drop in Joint Corp's long position.| American Shared vs. Ramsay Health Care | American Shared vs. Medical Facilities | American Shared vs. Jack Nathan Medical | American Shared vs. Fresenius SE Co |
| Joint Corp vs. Encompass Health Corp | Joint Corp vs. Pennant Group | Joint Corp vs. Enhabit | Joint Corp vs. ModivCare |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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