Correlation Between JD Health and Enhabit
Can any of the company-specific risk be diversified away by investing in both JD Health and Enhabit 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 JD Health and Enhabit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JD Health International and Enhabit, you can compare the effects of market volatilities on JD Health and Enhabit 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 JD Health with a short position of Enhabit. Check out your portfolio center. Please also check ongoing floating volatility patterns of JD Health and Enhabit.
Diversification Opportunities for JD Health and Enhabit
Pay attention - limited upside
The 3 months correlation between JDHIF and Enhabit is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding JD Health International and Enhabit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enhabit and JD Health 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 JD Health International are associated (or correlated) with Enhabit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enhabit has no effect on the direction of JD Health i.e., JD Health and Enhabit go up and down completely randomly.
Pair Corralation between JD Health and Enhabit
Assuming the 90 days horizon JD Health International is expected to generate 3.46 times more return on investment than Enhabit. However, JD Health is 3.46 times more volatile than Enhabit. It trades about 0.02 of its potential returns per unit of risk. Enhabit is currently generating about -0.41 per unit of risk. If you would invest 313.00 in JD Health International on October 9, 2024 and sell it today you would earn a total of 0.00 from holding JD Health International or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JD Health International vs. Enhabit
Performance |
| Timeline |
| JD Health International |
| Enhabit |
JD Health and Enhabit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JD Health and Enhabit
The main advantage of trading using opposite JD Health and Enhabit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JD Health position performs unexpectedly, Enhabit 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 Enhabit will offset losses from the drop in Enhabit's long position.| JD Health vs. Ryman Healthcare Limited | JD Health vs. Tenet Healthcare | JD Health vs. InnovAge Holding Corp | JD Health vs. agilon health |
| Enhabit vs. The Ensign Group | Enhabit vs. Pennant Group | Enhabit vs. InnovAge Holding Corp | Enhabit vs. National 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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