Correlation Between Assure Holdings and Nova Leap
Can any of the company-specific risk be diversified away by investing in both Assure Holdings and Nova Leap 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 Nova Leap 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 Nova Leap Health, you can compare the effects of market volatilities on Assure Holdings and Nova Leap 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 Nova Leap. Check out your portfolio center. Please also check ongoing floating volatility patterns of Assure Holdings and Nova Leap.
Diversification Opportunities for Assure Holdings and Nova Leap
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Assure and Nova is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Assure Holdings Corp and Nova Leap Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nova Leap 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 Nova Leap. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nova Leap Health has no effect on the direction of Assure Holdings i.e., Assure Holdings and Nova Leap go up and down completely randomly.
Pair Corralation between Assure Holdings and Nova Leap
Given the investment horizon of 90 days Assure Holdings Corp is expected to under-perform the Nova Leap. In addition to that, Assure Holdings is 1.2 times more volatile than Nova Leap Health. It trades about -0.06 of its total potential returns per unit of risk. Nova Leap Health is currently generating about 0.03 per unit of volatility. If you would invest 25.00 in Nova Leap Health on August 30, 2024 and sell it today you would lose (7.00) from holding Nova Leap Health or give up 28.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 82.46% |
| Values | Daily Returns |
Assure Holdings Corp vs. Nova Leap Health
Performance |
| Timeline |
| Assure Holdings Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Nova Leap Health |
Assure Holdings and Nova Leap Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Assure Holdings and Nova Leap
The main advantage of trading using opposite Assure Holdings and Nova Leap positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Assure Holdings position performs unexpectedly, Nova Leap 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 Nova Leap will offset losses from the drop in Nova Leap'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 |
| Nova Leap vs. Ramsay Health Care | Nova Leap vs. Jack Nathan Medical | Nova Leap vs. Fresenius SE Co | Nova Leap vs. The Ensign 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 CEOs Directory module to screen CEOs from public companies around the world.
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