Correlation Between Enhabit and Capricor Therapeutics
Can any of the company-specific risk be diversified away by investing in both Enhabit and Capricor Therapeutics 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 Enhabit and Capricor Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Enhabit and Capricor Therapeutics, you can compare the effects of market volatilities on Enhabit and Capricor Therapeutics 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 Enhabit with a short position of Capricor Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enhabit and Capricor Therapeutics.
Diversification Opportunities for Enhabit and Capricor Therapeutics
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Enhabit and Capricor is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Enhabit and Capricor Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Capricor Therapeutics and Enhabit 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 Enhabit are associated (or correlated) with Capricor Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Capricor Therapeutics has no effect on the direction of Enhabit i.e., Enhabit and Capricor Therapeutics go up and down completely randomly.
Pair Corralation between Enhabit and Capricor Therapeutics
Given the investment horizon of 90 days Enhabit is expected to generate 54.74 times less return on investment than Capricor Therapeutics. But when comparing it to its historical volatility, Enhabit is 2.29 times less risky than Capricor Therapeutics. It trades about 0.0 of its potential returns per unit of risk. Capricor Therapeutics is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,504 in Capricor Therapeutics on December 2, 2024 and sell it today you would earn a total of 34.00 from holding Capricor Therapeutics or generate 2.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Enhabit vs. Capricor Therapeutics
Performance |
| Timeline |
| Enhabit |
| Capricor Therapeutics |
Enhabit and Capricor Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enhabit and Capricor Therapeutics
The main advantage of trading using opposite Enhabit and Capricor Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enhabit position performs unexpectedly, Capricor Therapeutics 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 Capricor Therapeutics will offset losses from the drop in Capricor Therapeutics' long position.| Enhabit vs. The Ensign Group | ||
| Enhabit vs. Pennant Group | ||
| Enhabit vs. InnovAge Holding Corp | ||
| Enhabit vs. National HealthCare |
| Capricor Therapeutics vs. Bio Path Holdings | ||
| Capricor Therapeutics vs. NextCure | ||
| Capricor Therapeutics vs. Pulmatrix | ||
| Capricor Therapeutics vs. Akari Therapeutics PLC |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |