Correlation Between Surgery Partners and Enhabit
Can any of the company-specific risk be diversified away by investing in both Surgery Partners and Enhabit 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 Surgery Partners and Enhabit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Surgery Partners and Enhabit, you can compare the effects of market volatilities on Surgery Partners and Enhabit 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 Surgery Partners with a short position of Enhabit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Surgery Partners and Enhabit.
Diversification Opportunities for Surgery Partners and Enhabit
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Surgery and Enhabit is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Surgery Partners and Enhabit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enhabit and Surgery Partners 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 Surgery Partners are associated (or correlated) with Enhabit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enhabit has no effect on the direction of Surgery Partners i.e., Surgery Partners and Enhabit go up and down completely randomly.
Pair Corralation between Surgery Partners and Enhabit
Given the investment horizon of 90 days Surgery Partners is expected to generate 1.03 times less return on investment than Enhabit. In addition to that, Surgery Partners is 2.45 times more volatile than Enhabit. It trades about 0.06 of its total potential returns per unit of risk. Enhabit is currently generating about 0.16 per unit of volatility. If you would invest 770.00 in Enhabit on October 20, 2024 and sell it today you would earn a total of 29.00 from holding Enhabit or generate 3.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Surgery Partners vs. Enhabit
Performance |
| Timeline |
| Surgery Partners |
| Enhabit |
Surgery Partners and Enhabit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Surgery Partners and Enhabit
The main advantage of trading using opposite Surgery Partners and Enhabit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Surgery Partners position performs unexpectedly, Enhabit 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 Enhabit will offset losses from the drop in Enhabit's long position.| Surgery Partners vs. Pennant Group | Surgery Partners vs. The Ensign Group | Surgery Partners vs. Encompass Health Corp | Surgery Partners vs. Healthcare Services Group |
| Enhabit vs. The Ensign Group | Enhabit vs. Pennant Group | Enhabit vs. InnovAge Holding Corp | Enhabit vs. National HealthCare |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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