Correlation Between R1 RCM and Assure Holdings
Can any of the company-specific risk be diversified away by investing in both R1 RCM 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 R1 RCM and Assure Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between R1 RCM Inc and Assure Holdings Corp, you can compare the effects of market volatilities on R1 RCM 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 R1 RCM with a short position of Assure Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of R1 RCM and Assure Holdings.
Diversification Opportunities for R1 RCM and Assure Holdings
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between RCM and Assure is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding R1 RCM Inc 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 R1 RCM 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 R1 RCM Inc 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 R1 RCM i.e., R1 RCM and Assure Holdings go up and down completely randomly.
Pair Corralation between R1 RCM and Assure Holdings
Considering the 90-day investment horizon R1 RCM Inc is expected to generate 0.13 times more return on investment than Assure Holdings. However, R1 RCM Inc is 7.56 times less risky than Assure Holdings. It trades about 0.01 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 1,405 in R1 RCM Inc on August 27, 2024 and sell it today you would earn a total of 26.00 from holding R1 RCM Inc or generate 1.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 56.52% |
| Values | Daily Returns |
R1 RCM Inc vs. Assure Holdings Corp
Performance |
| Timeline |
| R1 RCM Inc |
| Assure Holdings Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
R1 RCM and Assure Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with R1 RCM and Assure Holdings
The main advantage of trading using opposite R1 RCM and Assure Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if R1 RCM 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.| R1 RCM vs. National Research Corp | R1 RCM vs. Definitive Healthcare Corp | R1 RCM vs. HealthStream | R1 RCM vs. Evolent Health |
| 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |