Correlation Between Enhabit and Surgery Partners
Can any of the company-specific risk be diversified away by investing in both Enhabit 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 Enhabit and Surgery Partners into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Enhabit and Surgery Partners, you can compare the effects of market volatilities on Enhabit 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 Enhabit with a short position of Surgery Partners. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enhabit and Surgery Partners.
Diversification Opportunities for Enhabit and Surgery Partners
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Enhabit and Surgery is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Enhabit and Surgery Partners in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Surgery Partners 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 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 Enhabit i.e., Enhabit and Surgery Partners go up and down completely randomly.
Pair Corralation between Enhabit and Surgery Partners
Given the investment horizon of 90 days Enhabit is expected to under-perform the Surgery Partners. In addition to that, Enhabit is 1.12 times more volatile than Surgery Partners. It trades about -0.02 of its total potential returns per unit of risk. Surgery Partners is currently generating about 0.0 per unit of volatility. If you would invest 2,860 in Surgery Partners on August 24, 2024 and sell it today you would lose (559.00) from holding Surgery Partners or give up 19.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Enhabit vs. Surgery Partners
Performance |
| Timeline |
| Enhabit |
| Surgery Partners |
Enhabit and Surgery Partners Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enhabit and Surgery Partners
The main advantage of trading using opposite Enhabit and Surgery Partners positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enhabit 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.| Enhabit vs. The Ensign Group | Enhabit vs. Pennant Group | Enhabit vs. InnovAge Holding Corp | Enhabit vs. National HealthCare |
| 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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