Correlation Between Nova Leap and Assure Holdings
Can any of the company-specific risk be diversified away by investing in both Nova Leap 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 Nova Leap and Assure Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nova Leap Health and Assure Holdings Corp, you can compare the effects of market volatilities on Nova Leap 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 Nova Leap with a short position of Assure Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nova Leap and Assure Holdings.
Diversification Opportunities for Nova Leap and Assure Holdings
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Nova and Assure is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Nova Leap Health 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 Nova Leap 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 Nova Leap Health 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 Nova Leap i.e., Nova Leap and Assure Holdings go up and down completely randomly.
Pair Corralation between Nova Leap and Assure Holdings
Assuming the 90 days horizon Nova Leap Health is expected to generate 0.77 times more return on investment than Assure Holdings. However, Nova Leap Health is 1.3 times less risky than Assure Holdings. It trades about 0.05 of its potential returns per unit of risk. Assure Holdings Corp is currently generating about -0.03 per unit of risk. If you would invest 17.00 in Nova Leap Health on August 27, 2024 and sell it today you would earn a total of 1.00 from holding Nova Leap Health or generate 5.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 66.13% |
| Values | Daily Returns |
Nova Leap Health vs. Assure Holdings Corp
Performance |
| Timeline |
| Nova Leap Health |
| Assure Holdings Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Nova Leap and Assure Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nova Leap and Assure Holdings
The main advantage of trading using opposite Nova Leap and Assure Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nova Leap 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.| Nova Leap vs. Ramsay Health Care | Nova Leap vs. Jack Nathan Medical | Nova Leap vs. Fresenius SE Co | Nova Leap vs. The Ensign Group |
| Assure Holdings vs. Novo Integrated Sciences | Assure Holdings vs. Aveanna Healthcare Holdings | Assure Holdings vs. P3 Health Partners | Assure Holdings vs. Sonida Senior Living |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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