Correlation Between Mednax and Ensign
Can any of the company-specific risk be diversified away by investing in both Mednax and Ensign 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 Mednax and Ensign into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mednax Inc and The Ensign Group, you can compare the effects of market volatilities on Mednax and Ensign 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 Mednax with a short position of Ensign. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mednax and Ensign.
Diversification Opportunities for Mednax and Ensign
Very good diversification
The 3 months correlation between Mednax and Ensign is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Mednax Inc and The Ensign Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ensign Group and Mednax 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 Mednax Inc are associated (or correlated) with Ensign. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ensign Group has no effect on the direction of Mednax i.e., Mednax and Ensign go up and down completely randomly.
Pair Corralation between Mednax and Ensign
Allowing for the 90-day total investment horizon Mednax is expected to generate 2.38 times less return on investment than Ensign. In addition to that, Mednax is 2.15 times more volatile than The Ensign Group. It trades about 0.02 of its total potential returns per unit of risk. The Ensign Group is currently generating about 0.1 per unit of volatility. If you would invest 9,286 in The Ensign Group on August 31, 2024 and sell it today you would earn a total of 5,335 from holding The Ensign Group or generate 57.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mednax Inc vs. The Ensign Group
Performance |
| Timeline |
| Mednax Inc |
| Ensign Group |
Mednax and Ensign Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mednax and Ensign
The main advantage of trading using opposite Mednax and Ensign positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mednax position performs unexpectedly, Ensign 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 Ensign will offset losses from the drop in Ensign's long position.| Mednax vs. Acadia Healthcare | Mednax vs. Select Medical Holdings | Mednax vs. Universal Health Services | Mednax vs. Prestige Brand Holdings |
| Ensign vs. Acadia Healthcare | Ensign vs. Select Medical Holdings | Ensign vs. Universal Health Services | Ensign vs. Prestige Brand Holdings |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |