Correlation Between Surgery Partners and Lifestance Health
Can any of the company-specific risk be diversified away by investing in both Surgery Partners and Lifestance 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 Surgery Partners and Lifestance Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Surgery Partners and Lifestance Health Group, you can compare the effects of market volatilities on Surgery Partners and Lifestance 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 Surgery Partners with a short position of Lifestance Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Surgery Partners and Lifestance Health.
Diversification Opportunities for Surgery Partners and Lifestance Health
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Surgery and Lifestance is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Surgery Partners and Lifestance Health Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lifestance Health 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 Lifestance Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lifestance Health has no effect on the direction of Surgery Partners i.e., Surgery Partners and Lifestance Health go up and down completely randomly.
Pair Corralation between Surgery Partners and Lifestance Health
Given the investment horizon of 90 days Surgery Partners is expected to generate 27.49 times less return on investment than Lifestance Health. But when comparing it to its historical volatility, Surgery Partners is 1.11 times less risky than Lifestance Health. It trades about 0.0 of its potential returns per unit of risk. Lifestance Health Group is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 567.00 in Lifestance Health Group on August 24, 2024 and sell it today you would earn a total of 173.00 from holding Lifestance Health Group or generate 30.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Surgery Partners vs. Lifestance Health Group
Performance |
| Timeline |
| Surgery Partners |
| Lifestance Health |
Surgery Partners and Lifestance Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Surgery Partners and Lifestance Health
The main advantage of trading using opposite Surgery Partners and Lifestance Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Surgery Partners position performs unexpectedly, Lifestance 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 Lifestance Health will offset losses from the drop in Lifestance Health'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 |
| Lifestance Health vs. Pennant Group | Lifestance Health vs. Encompass Health Corp | Lifestance Health vs. Enhabit | Lifestance Health 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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