Correlation Between Jack Nathan and Lifestance Health
Can any of the company-specific risk be diversified away by investing in both Jack Nathan and Lifestance 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 Jack Nathan and Lifestance Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jack Nathan Medical and Lifestance Health Group, you can compare the effects of market volatilities on Jack Nathan and Lifestance 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 Jack Nathan with a short position of Lifestance Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jack Nathan and Lifestance Health.
Diversification Opportunities for Jack Nathan and Lifestance Health
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jack and Lifestance is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Jack Nathan Medical and Lifestance Health Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lifestance Health and Jack Nathan 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 Jack Nathan Medical are associated (or correlated) with Lifestance Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lifestance Health has no effect on the direction of Jack Nathan i.e., Jack Nathan and Lifestance Health go up and down completely randomly.
Pair Corralation between Jack Nathan and Lifestance Health
Assuming the 90 days horizon Jack Nathan Medical is expected to generate 23.09 times more return on investment than Lifestance Health. However, Jack Nathan is 23.09 times more volatile than Lifestance Health Group. It trades about 0.24 of its potential returns per unit of risk. Lifestance Health Group is currently generating about 0.23 per unit of risk. If you would invest 0.90 in Jack Nathan Medical on November 3, 2024 and sell it today you would earn a total of 2.00 from holding Jack Nathan Medical or generate 222.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Jack Nathan Medical vs. Lifestance Health Group
Performance |
| Timeline |
| Jack Nathan Medical |
| Lifestance Health |
Jack Nathan and Lifestance Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jack Nathan and Lifestance Health
The main advantage of trading using opposite Jack Nathan and Lifestance Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jack Nathan position performs unexpectedly, Lifestance 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 Lifestance Health will offset losses from the drop in Lifestance Health's long position.| Jack Nathan vs. Medical Facilities | Jack Nathan vs. Fresenius SE Co | Jack Nathan vs. Ramsay Health Care | Jack Nathan vs. Nova Leap Health |
| Lifestance Health vs. Pennant Group | Lifestance Health vs. Encompass Health Corp | Lifestance Health vs. Enhabit | Lifestance Health vs. Concord Medical Services |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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