Correlation Between Chicago Atlantic and NMC Health
Can any of the company-specific risk be diversified away by investing in both Chicago Atlantic and NMC Health 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 Chicago Atlantic and NMC Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chicago Atlantic Real and NMC Health PLC, you can compare the effects of market volatilities on Chicago Atlantic and NMC Health 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 Chicago Atlantic with a short position of NMC Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chicago Atlantic and NMC Health.
Diversification Opportunities for Chicago Atlantic and NMC Health
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Chicago and NMC is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Chicago Atlantic Real and NMC Health PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NMC Health PLC and Chicago Atlantic 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 Chicago Atlantic Real are associated (or correlated) with NMC Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NMC Health PLC has no effect on the direction of Chicago Atlantic i.e., Chicago Atlantic and NMC Health go up and down completely randomly.
Pair Corralation between Chicago Atlantic and NMC Health
If you would invest 0.02 in NMC Health PLC on October 15, 2024 and sell it today you would earn a total of 0.00 from holding NMC Health PLC or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 5.56% |
| Values | Daily Returns |
Chicago Atlantic Real vs. NMC Health PLC
Performance |
| Timeline |
| Chicago Atlantic Real |
| NMC Health PLC |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Chicago Atlantic and NMC Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chicago Atlantic and NMC Health
The main advantage of trading using opposite Chicago Atlantic and NMC Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chicago Atlantic position performs unexpectedly, NMC Health 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 NMC Health will offset losses from the drop in NMC Health's long position.| Chicago Atlantic vs. KKR Real Estate | Chicago Atlantic vs. Ellington Residential Mortgage | Chicago Atlantic vs. Claros Mortgage Trust | Chicago Atlantic vs. Ares Commercial Real |
| NMC Health vs. Veltex | NMC Health vs. Numinus Wellness | NMC Health vs. IMAC Holdings | NMC Health vs. P3 Health Partners |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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