Correlation Between Lifestance Health and Jack Nathan
Can any of the company-specific risk be diversified away by investing in both Lifestance Health and Jack Nathan 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 Jack Nathan 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 Jack Nathan Medical, you can compare the effects of market volatilities on Lifestance Health and Jack Nathan 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 Jack Nathan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lifestance Health and Jack Nathan.
Diversification Opportunities for Lifestance Health and Jack Nathan
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lifestance and Jack is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Lifestance Health Group and Jack Nathan Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jack Nathan Medical 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 Jack Nathan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jack Nathan Medical has no effect on the direction of Lifestance Health i.e., Lifestance Health and Jack Nathan go up and down completely randomly.
Pair Corralation between Lifestance Health and Jack Nathan
Given the investment horizon of 90 days Lifestance Health is expected to generate 26.88 times less return on investment than Jack Nathan. But when comparing it to its historical volatility, Lifestance Health Group is 36.56 times less risky than Jack Nathan. It trades about 0.33 of its potential returns per unit of risk. Jack Nathan Medical is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 2.30 in Jack Nathan Medical on October 23, 2024 and sell it today you would earn a total of 0.60 from holding Jack Nathan Medical or generate 26.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lifestance Health Group vs. Jack Nathan Medical
Performance |
| Timeline |
| Lifestance Health |
| Jack Nathan Medical |
Lifestance Health and Jack Nathan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lifestance Health and Jack Nathan
The main advantage of trading using opposite Lifestance Health and Jack Nathan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lifestance Health position performs unexpectedly, Jack Nathan 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 Jack Nathan will offset losses from the drop in Jack Nathan's long position.| 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |