Correlation Between Pennant and Mid-Atlantic Home
Can any of the company-specific risk be diversified away by investing in both Pennant and Mid-Atlantic Home 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 Pennant and Mid-Atlantic Home into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pennant Group and Mid Atlantic Home Health, you can compare the effects of market volatilities on Pennant and Mid-Atlantic Home 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 Pennant with a short position of Mid-Atlantic Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pennant and Mid-Atlantic Home.
Diversification Opportunities for Pennant and Mid-Atlantic Home
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Pennant and Mid-Atlantic is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Pennant Group and Mid Atlantic Home Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mid Atlantic Home and Pennant 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 Pennant Group are associated (or correlated) with Mid-Atlantic Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mid Atlantic Home has no effect on the direction of Pennant i.e., Pennant and Mid-Atlantic Home go up and down completely randomly.
Pair Corralation between Pennant and Mid-Atlantic Home
If you would invest 2,683 in Pennant Group on October 22, 2024 and sell it today you would earn a total of 63.00 from holding Pennant Group or generate 2.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 94.74% |
| Values | Daily Returns |
Pennant Group vs. Mid Atlantic Home Health
Performance |
| Timeline |
| Pennant Group |
| Mid Atlantic Home |
Pennant and Mid-Atlantic Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pennant and Mid-Atlantic Home
The main advantage of trading using opposite Pennant and Mid-Atlantic Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pennant position performs unexpectedly, Mid-Atlantic Home 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 Mid-Atlantic Home will offset losses from the drop in Mid-Atlantic Home's long position.| Pennant vs. Encompass Health Corp | Pennant vs. Acadia Healthcare | Pennant vs. Select Medical Holdings | Pennant vs. Addus HomeCare |
| Mid-Atlantic Home vs. Pennant Group | Mid-Atlantic Home vs. Encompass Health Corp | Mid-Atlantic Home vs. Enhabit | Mid-Atlantic Home 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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