Correlation Between Sachem Capital and Extendicare
Can any of the company-specific risk be diversified away by investing in both Sachem Capital and Extendicare 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 Sachem Capital and Extendicare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sachem Capital Corp and Extendicare, you can compare the effects of market volatilities on Sachem Capital and Extendicare 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 Sachem Capital with a short position of Extendicare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sachem Capital and Extendicare.
Diversification Opportunities for Sachem Capital and Extendicare
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sachem and Extendicare is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Sachem Capital Corp and Extendicare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Extendicare and Sachem Capital 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 Sachem Capital Corp are associated (or correlated) with Extendicare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Extendicare has no effect on the direction of Sachem Capital i.e., Sachem Capital and Extendicare go up and down completely randomly.
Pair Corralation between Sachem Capital and Extendicare
If you would invest 500.00 in Extendicare on August 30, 2024 and sell it today you would earn a total of 0.00 from holding Extendicare or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.35% |
| Values | Daily Returns |
Sachem Capital Corp vs. Extendicare
Performance |
| Timeline |
| Sachem Capital Corp |
| Extendicare |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Sachem Capital and Extendicare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sachem Capital and Extendicare
The main advantage of trading using opposite Sachem Capital and Extendicare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sachem Capital position performs unexpectedly, Extendicare 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 Extendicare will offset losses from the drop in Extendicare's long position.| Sachem Capital vs. SiriusPoint | Sachem Capital vs. Harrow Health 8625 | Sachem Capital vs. XOMA Corporation | Sachem Capital vs. New York Mortgage |
| Extendicare vs. Ramsay Health Care | Extendicare vs. Jack Nathan Medical | Extendicare vs. Nova Leap Health | Extendicare vs. Fresenius SE Co |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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