Correlation Between Numinus Wellness and Assure Holdings
Can any of the company-specific risk be diversified away by investing in both Numinus Wellness and Assure Holdings 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 Numinus Wellness and Assure Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Numinus Wellness and Assure Holdings Corp, you can compare the effects of market volatilities on Numinus Wellness and Assure Holdings 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 Numinus Wellness with a short position of Assure Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Numinus Wellness and Assure Holdings.
Diversification Opportunities for Numinus Wellness and Assure Holdings
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Numinus and Assure is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Numinus Wellness and Assure Holdings Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Assure Holdings Corp and Numinus Wellness 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 Numinus Wellness are associated (or correlated) with Assure Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Assure Holdings Corp has no effect on the direction of Numinus Wellness i.e., Numinus Wellness and Assure Holdings go up and down completely randomly.
Pair Corralation between Numinus Wellness and Assure Holdings
Assuming the 90 days horizon Numinus Wellness is expected to generate 0.66 times more return on investment than Assure Holdings. However, Numinus Wellness is 1.51 times less risky than Assure Holdings. It trades about -0.02 of its potential returns per unit of risk. Assure Holdings Corp is currently generating about -0.05 per unit of risk. If you would invest 18.00 in Numinus Wellness on September 26, 2024 and sell it today you would lose (15.40) from holding Numinus Wellness or give up 85.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 78.87% |
| Values | Daily Returns |
Numinus Wellness vs. Assure Holdings Corp
Performance |
| Timeline |
| Numinus Wellness |
| Assure Holdings Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Numinus Wellness and Assure Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Numinus Wellness and Assure Holdings
The main advantage of trading using opposite Numinus Wellness and Assure Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Numinus Wellness position performs unexpectedly, Assure Holdings 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 Assure Holdings will offset losses from the drop in Assure Holdings' long position.The idea behind Numinus Wellness and Assure Holdings Corp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Assure Holdings vs. Aveanna Healthcare Holdings | Assure Holdings vs. P3 Health Partners | Assure Holdings vs. Sonida Senior Living | Assure Holdings vs. Acadia Healthcare |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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