Correlation Between Assure Holdings and Cano Health
Can any of the company-specific risk be diversified away by investing in both Assure Holdings and Cano Health 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 Assure Holdings and Cano Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Assure Holdings Corp and Cano Health, you can compare the effects of market volatilities on Assure Holdings and Cano Health 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 Assure Holdings with a short position of Cano Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Assure Holdings and Cano Health.
Diversification Opportunities for Assure Holdings and Cano Health
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Assure and Cano is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Assure Holdings Corp and Cano Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cano Health and Assure Holdings 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 Assure Holdings Corp are associated (or correlated) with Cano Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cano Health has no effect on the direction of Assure Holdings i.e., Assure Holdings and Cano Health go up and down completely randomly.
Pair Corralation between Assure Holdings and Cano Health
Given the investment horizon of 90 days Assure Holdings Corp is expected to under-perform the Cano Health. In addition to that, Assure Holdings is 2.0 times more volatile than Cano Health. It trades about -0.03 of its total potential returns per unit of risk. Cano Health is currently generating about 0.04 per unit of volatility. If you would invest 133.00 in Cano Health on August 31, 2024 and sell it today you would earn a total of 4.00 from holding Cano Health or generate 3.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 11.19% |
| Values | Daily Returns |
Assure Holdings Corp vs. Cano Health
Performance |
| Timeline |
| Assure Holdings Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Cano Health |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Assure Holdings and Cano Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Assure Holdings and Cano Health
The main advantage of trading using opposite Assure Holdings and Cano Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Assure Holdings position performs unexpectedly, Cano Health 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 Cano Health will offset losses from the drop in Cano Health's long position.| Assure Holdings vs. Novo Integrated Sciences | Assure Holdings vs. Aveanna Healthcare Holdings | Assure Holdings vs. P3 Health Partners | Assure Holdings vs. Sonida Senior Living |
| Cano Health vs. Oncology Institute | Cano Health vs. Lifestance Health Group | Cano Health vs. agilon health | Cano Health vs. Pennant 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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