Correlation Between Lifestance Health and Cano Health
Can any of the company-specific risk be diversified away by investing in both Lifestance Health and Cano 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 Lifestance Health and Cano Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lifestance Health Group and Cano Health, you can compare the effects of market volatilities on Lifestance Health and Cano 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 Lifestance Health with a short position of Cano Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lifestance Health and Cano Health.
Diversification Opportunities for Lifestance Health and Cano Health
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Lifestance and Cano is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Lifestance Health Group and Cano Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cano Health and Lifestance 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 Lifestance Health Group are associated (or correlated) with Cano Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cano Health has no effect on the direction of Lifestance Health i.e., Lifestance Health and Cano Health go up and down completely randomly.
Pair Corralation between Lifestance Health and Cano Health
If you would invest 693.00 in Lifestance Health Group on August 28, 2024 and sell it today you would earn a total of 67.00 from holding Lifestance Health Group or generate 9.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Lifestance Health Group vs. Cano Health
Performance |
| Timeline |
| Lifestance Health |
| Cano Health |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Lifestance Health and Cano Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lifestance Health and Cano Health
The main advantage of trading using opposite Lifestance Health and Cano Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lifestance Health position performs unexpectedly, Cano 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 Cano Health will offset losses from the drop in Cano Health's long position.| Lifestance Health vs. Pennant Group | Lifestance Health vs. Encompass Health Corp | Lifestance Health vs. Enhabit | Lifestance Health vs. Concord Medical Services |
| Cano Health vs. Oncology Institute | Cano Health vs. Lifestance Health Group | Cano Health vs. agilon health | Cano Health vs. Pennant 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |