Correlation Between Assure Holdings and Numinus Wellness
Can any of the company-specific risk be diversified away by investing in both Assure Holdings and Numinus Wellness 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 Numinus Wellness 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 Numinus Wellness, you can compare the effects of market volatilities on Assure Holdings and Numinus Wellness 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 Numinus Wellness. Check out your portfolio center. Please also check ongoing floating volatility patterns of Assure Holdings and Numinus Wellness.
Diversification Opportunities for Assure Holdings and Numinus Wellness
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Assure and Numinus is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Assure Holdings Corp and Numinus Wellness in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Numinus Wellness 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 Numinus Wellness. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Numinus Wellness has no effect on the direction of Assure Holdings i.e., Assure Holdings and Numinus Wellness go up and down completely randomly.
Pair Corralation between Assure Holdings and Numinus Wellness
If you would invest 2.10 in Numinus Wellness on September 26, 2024 and sell it today you would earn a total of 0.50 from holding Numinus Wellness or generate 23.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 2.38% |
| Values | Daily Returns |
Assure Holdings Corp vs. Numinus Wellness
Performance |
| Timeline |
| Assure Holdings Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Numinus Wellness |
Assure Holdings and Numinus Wellness Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Assure Holdings and Numinus Wellness
The main advantage of trading using opposite Assure Holdings and Numinus Wellness positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Assure Holdings position performs unexpectedly, Numinus Wellness 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 Numinus Wellness will offset losses from the drop in Numinus Wellness' long position.| Assure Holdings vs. Aveanna Healthcare Holdings | Assure Holdings vs. P3 Health Partners | Assure Holdings vs. Sonida Senior Living | Assure Holdings vs. Acadia Healthcare |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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