Correlation Between Concord Medical and Aveanna Healthcare
Can any of the company-specific risk be diversified away by investing in both Concord Medical and Aveanna Healthcare 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 Concord Medical and Aveanna Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Concord Medical Services and Aveanna Healthcare Holdings, you can compare the effects of market volatilities on Concord Medical and Aveanna Healthcare 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 Concord Medical with a short position of Aveanna Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Concord Medical and Aveanna Healthcare.
Diversification Opportunities for Concord Medical and Aveanna Healthcare
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Concord and Aveanna is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Concord Medical Services and Aveanna Healthcare Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aveanna Healthcare and Concord 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 Concord Medical Services are associated (or correlated) with Aveanna Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aveanna Healthcare has no effect on the direction of Concord Medical i.e., Concord Medical and Aveanna Healthcare go up and down completely randomly.
Pair Corralation between Concord Medical and Aveanna Healthcare
Considering the 90-day investment horizon Concord Medical Services is expected to under-perform the Aveanna Healthcare. In addition to that, Concord Medical is 1.54 times more volatile than Aveanna Healthcare Holdings. It trades about -0.09 of its total potential returns per unit of risk. Aveanna Healthcare Holdings is currently generating about 0.04 per unit of volatility. If you would invest 549.00 in Aveanna Healthcare Holdings on August 25, 2024 and sell it today you would earn a total of 35.00 from holding Aveanna Healthcare Holdings or generate 6.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Concord Medical Services vs. Aveanna Healthcare Holdings
Performance |
| Timeline |
| Concord Medical Services |
| Aveanna Healthcare |
Concord Medical and Aveanna Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Concord Medical and Aveanna Healthcare
The main advantage of trading using opposite Concord Medical and Aveanna Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Concord Medical position performs unexpectedly, Aveanna Healthcare 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 Aveanna Healthcare will offset losses from the drop in Aveanna Healthcare's long position.| Concord Medical vs. Pennant Group | Concord Medical vs. Encompass Health Corp | Concord Medical vs. Enhabit | Concord Medical vs. National HealthCare |
| Aveanna Healthcare vs. Heartbeam | Aveanna Healthcare vs. EUDA Health Holdings | Aveanna Healthcare vs. Nutex Health | Aveanna Healthcare vs. Healthcare Triangle |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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