Correlation Between Tenet Healthcare and JD Health
Can any of the company-specific risk be diversified away by investing in both Tenet Healthcare and JD 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 Tenet Healthcare and JD Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tenet Healthcare and JD Health International, you can compare the effects of market volatilities on Tenet Healthcare and JD 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 Tenet Healthcare with a short position of JD Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tenet Healthcare and JD Health.
Diversification Opportunities for Tenet Healthcare and JD Health
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Tenet and JDHIF is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Tenet Healthcare and JD Health International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JD Health International and Tenet Healthcare 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 Tenet Healthcare are associated (or correlated) with JD Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JD Health International has no effect on the direction of Tenet Healthcare i.e., Tenet Healthcare and JD Health go up and down completely randomly.
Pair Corralation between Tenet Healthcare and JD Health
If you would invest 14,499 in Tenet Healthcare on November 3, 2024 and sell it today you would lose (410.00) from holding Tenet Healthcare or give up 2.83% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tenet Healthcare vs. JD Health International
Performance |
| Timeline |
| Tenet Healthcare |
| JD Health International |
Tenet Healthcare and JD Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tenet Healthcare and JD Health
The main advantage of trading using opposite Tenet Healthcare and JD Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tenet Healthcare position performs unexpectedly, JD 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 JD Health will offset losses from the drop in JD Health's long position.| Tenet Healthcare vs. Acadia Healthcare | Tenet Healthcare vs. HCA Holdings | Tenet Healthcare vs. US Physicalrapy | Tenet Healthcare vs. DaVita HealthCare Partners |
| JD Health vs. Ryman Healthcare Limited | JD Health vs. Tenet Healthcare | JD Health vs. InnovAge Holding Corp | JD Health vs. agilon health |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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