Correlation Between Enhabit and CryoCell International
Can any of the company-specific risk be diversified away by investing in both Enhabit and CryoCell International 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 CryoCell International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Enhabit and CryoCell International, you can compare the effects of market volatilities on Enhabit and CryoCell International 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 CryoCell International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enhabit and CryoCell International.
Diversification Opportunities for Enhabit and CryoCell International
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Enhabit and CryoCell is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Enhabit and CryoCell International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CryoCell International 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 CryoCell International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CryoCell International has no effect on the direction of Enhabit i.e., Enhabit and CryoCell International go up and down completely randomly.
Pair Corralation between Enhabit and CryoCell International
Given the investment horizon of 90 days Enhabit is expected to generate 1.28 times less return on investment than CryoCell International. But when comparing it to its historical volatility, Enhabit is 1.1 times less risky than CryoCell International. It trades about 0.13 of its potential returns per unit of risk. CryoCell International is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 740.00 in CryoCell International on November 9, 2024 and sell it today you would earn a total of 54.00 from holding CryoCell International or generate 7.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Enhabit vs. CryoCell International
Performance |
| Timeline |
| Enhabit |
| CryoCell International |
Enhabit and CryoCell International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enhabit and CryoCell International
The main advantage of trading using opposite Enhabit and CryoCell International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enhabit position performs unexpectedly, CryoCell International 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 CryoCell International will offset losses from the drop in CryoCell International's long position.| Enhabit vs. The Ensign Group | Enhabit vs. Pennant Group | Enhabit vs. InnovAge Holding Corp | Enhabit vs. National HealthCare |
| CryoCell International vs. National HealthCare | CryoCell International vs. InnovAge Holding Corp | CryoCell International vs. Pennant Group | CryoCell International vs. Encompass Health Corp |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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