Correlation Between Enhabit and Astrana Health
Can any of the company-specific risk be diversified away by investing in both Enhabit and Astrana 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 Enhabit and Astrana Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Enhabit and Astrana Health, you can compare the effects of market volatilities on Enhabit and Astrana 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 Enhabit with a short position of Astrana Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enhabit and Astrana Health.
Diversification Opportunities for Enhabit and Astrana Health
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Enhabit and Astrana is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Enhabit and Astrana Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Astrana Health and Enhabit 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 Enhabit are associated (or correlated) with Astrana Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Astrana Health has no effect on the direction of Enhabit i.e., Enhabit and Astrana Health go up and down completely randomly.
Pair Corralation between Enhabit and Astrana Health
Given the investment horizon of 90 days Enhabit is expected to generate 0.79 times more return on investment than Astrana Health. However, Enhabit is 1.27 times less risky than Astrana Health. It trades about 0.0 of its potential returns per unit of risk. Astrana Health is currently generating about -0.21 per unit of risk. If you would invest 788.00 in Enhabit on September 25, 2024 and sell it today you would lose (22.00) from holding Enhabit or give up 2.79% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Enhabit vs. Astrana Health
Performance |
Timeline |
Enhabit |
Astrana Health |
Enhabit and Astrana Health Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Enhabit and Astrana Health
The main advantage of trading using opposite Enhabit and Astrana Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enhabit position performs unexpectedly, Astrana 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 Astrana Health will offset losses from the drop in Astrana Health's long position.Enhabit vs. Definitive Healthcare Corp | Enhabit vs. Edwards Lifesciences Corp | Enhabit vs. Outset Medical | Enhabit vs. Doximity |
Astrana Health vs. BioNTech SE | Astrana Health vs. Valens | Astrana Health vs. Arrow Electronics | Astrana Health vs. Inhibrx |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
Stocks Directory Find actively traded stocks across global markets | |
Global Correlations Find global opportunities by holding instruments from different markets | |
Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |