Correlation Between Assure Holdings and Sonida Senior
Can any of the company-specific risk be diversified away by investing in both Assure Holdings and Sonida Senior 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 Sonida Senior 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 Sonida Senior Living, you can compare the effects of market volatilities on Assure Holdings and Sonida Senior 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 Sonida Senior. Check out your portfolio center. Please also check ongoing floating volatility patterns of Assure Holdings and Sonida Senior.
Diversification Opportunities for Assure Holdings and Sonida Senior
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Assure and Sonida is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Assure Holdings Corp and Sonida Senior Living in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sonida Senior Living 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 Sonida Senior. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sonida Senior Living has no effect on the direction of Assure Holdings i.e., Assure Holdings and Sonida Senior go up and down completely randomly.
Pair Corralation between Assure Holdings and Sonida Senior
Given the investment horizon of 90 days Assure Holdings Corp is expected to under-perform the Sonida Senior. In addition to that, Assure Holdings is 2.31 times more volatile than Sonida Senior Living. It trades about -0.06 of its total potential returns per unit of risk. Sonida Senior Living is currently generating about 0.04 per unit of volatility. If you would invest 1,600 in Sonida Senior Living on August 30, 2024 and sell it today you would earn a total of 983.00 from holding Sonida Senior Living or generate 61.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 82.63% |
| Values | Daily Returns |
Assure Holdings Corp vs. Sonida Senior Living
Performance |
| Timeline |
| Assure Holdings Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Sonida Senior Living |
Assure Holdings and Sonida Senior Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Assure Holdings and Sonida Senior
The main advantage of trading using opposite Assure Holdings and Sonida Senior positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Assure Holdings position performs unexpectedly, Sonida Senior 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 Sonida Senior will offset losses from the drop in Sonida Senior'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 |
| Sonida Senior vs. ReShape Lifesciences | Sonida Senior vs. Bone Biologics Corp | Sonida Senior vs. Tivic Health Systems | Sonida Senior vs. Nuwellis |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |