Correlation Between Cano Health and Pennant
Can any of the company-specific risk be diversified away by investing in both Cano Health and Pennant 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 Cano Health and Pennant into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cano Health and Pennant Group, you can compare the effects of market volatilities on Cano Health and Pennant 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 Cano Health with a short position of Pennant. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cano Health and Pennant.
Diversification Opportunities for Cano Health and Pennant
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Cano and Pennant is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Cano Health and Pennant Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pennant Group and Cano Health 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 Cano Health are associated (or correlated) with Pennant. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pennant Group has no effect on the direction of Cano Health i.e., Cano Health and Pennant go up and down completely randomly.
Pair Corralation between Cano Health and Pennant
If you would invest 2,683 in Pennant Group on October 23, 2024 and sell it today you would earn a total of 63.00 from holding Pennant Group or generate 2.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 5.56% |
| Values | Daily Returns |
Cano Health vs. Pennant Group
Performance |
| Timeline |
| Cano Health |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Pennant Group |
Cano Health and Pennant Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cano Health and Pennant
The main advantage of trading using opposite Cano Health and Pennant positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cano Health position performs unexpectedly, Pennant 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 Pennant will offset losses from the drop in Pennant's long position.| Cano Health vs. Oncology Institute | Cano Health vs. Lifestance Health Group | Cano Health vs. agilon health | Cano Health vs. Pennant Group |
| Pennant vs. Encompass Health Corp | Pennant vs. Acadia Healthcare | Pennant vs. Select Medical Holdings | Pennant vs. Addus HomeCare |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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