Correlation Between American Shared and Surgery Partners
Can any of the company-specific risk be diversified away by investing in both American Shared and Surgery Partners 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 Surgery Partners 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 Surgery Partners, you can compare the effects of market volatilities on American Shared and Surgery Partners 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 Surgery Partners. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Shared and Surgery Partners.
Diversification Opportunities for American Shared and Surgery Partners
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between American and Surgery is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding American Shared Hospital and Surgery Partners in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Surgery Partners 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 Surgery Partners. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Surgery Partners has no effect on the direction of American Shared i.e., American Shared and Surgery Partners go up and down completely randomly.
Pair Corralation between American Shared and Surgery Partners
Considering the 90-day investment horizon American Shared Hospital is expected to generate 0.97 times more return on investment than Surgery Partners. However, American Shared Hospital is 1.03 times less risky than Surgery Partners. It trades about -0.02 of its potential returns per unit of risk. Surgery Partners is currently generating about -0.09 per unit of risk. If you would invest 326.00 in American Shared Hospital on October 22, 2024 and sell it today you would lose (4.00) from holding American Shared Hospital or give up 1.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
American Shared Hospital vs. Surgery Partners
Performance |
| Timeline |
| American Shared Hospital |
| Surgery Partners |
American Shared and Surgery Partners Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Shared and Surgery Partners
The main advantage of trading using opposite American Shared and Surgery Partners positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Shared position performs unexpectedly, Surgery Partners 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 Surgery Partners will offset losses from the drop in Surgery Partners' 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 |
| Surgery Partners vs. Pennant Group | Surgery Partners vs. The Ensign Group | Surgery Partners vs. Encompass Health Corp | Surgery Partners vs. Healthcare Services Group |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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