Correlation Between Mid Atlantic and Pennant
Can any of the company-specific risk be diversified away by investing in both Mid Atlantic and Pennant 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 Mid Atlantic and Pennant into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mid Atlantic Home Health and Pennant Group, you can compare the effects of market volatilities on Mid Atlantic and Pennant 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 Mid Atlantic with a short position of Pennant. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mid Atlantic and Pennant.
Diversification Opportunities for Mid Atlantic and Pennant
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Mid and Pennant is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Mid Atlantic Home Health and Pennant Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pennant Group and Mid Atlantic 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 Mid Atlantic Home Health are associated (or correlated) with Pennant. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pennant Group has no effect on the direction of Mid Atlantic i.e., Mid Atlantic and Pennant go up and down completely randomly.
Pair Corralation between Mid Atlantic and Pennant
If you would invest 1,331 in Pennant Group on September 2, 2024 and sell it today you would earn a total of 1,787 from holding Pennant Group or generate 134.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mid Atlantic Home Health vs. Pennant Group
Performance |
| Timeline |
| Mid Atlantic Home |
| Pennant Group |
Mid Atlantic and Pennant Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mid Atlantic and Pennant
The main advantage of trading using opposite Mid Atlantic and Pennant positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mid Atlantic position performs unexpectedly, Pennant 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 Pennant will offset losses from the drop in Pennant's long position.| Mid Atlantic vs. Pennant Group | Mid Atlantic vs. Encompass Health Corp | Mid Atlantic vs. Enhabit | Mid Atlantic 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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