Correlation Between Assure Holdings and Aveanna Healthcare

Can any of the company-specific risk be diversified away by investing in both Assure Holdings and Aveanna Healthcare 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 Assure Holdings and Aveanna Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Assure Holdings Corp and Aveanna Healthcare Holdings, you can compare the effects of market volatilities on Assure Holdings and Aveanna Healthcare 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 Assure Holdings with a short position of Aveanna Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Assure Holdings and Aveanna Healthcare.

Diversification Opportunities for Assure Holdings and Aveanna Healthcare

-0.21

Correlation Coefficient

Assure Holdings  Aveanna Healthcare

Very good diversification

The 3 months correlation between Assure and Aveanna is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Assure Holdings Corp and Aveanna Healthcare Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aveanna Healthcare and Assure Holdings 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 Assure Holdings Corp are associated (or correlated) with Aveanna Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aveanna Healthcare has no effect on the direction of Assure Holdings i.e., Assure Holdings and Aveanna Healthcare go up and down completely randomly.

Pair Corralation between Assure Holdings and Aveanna Healthcare

If you would invest  535.00  in Aveanna Healthcare Holdings on September 2, 2024 and sell it today you would earn a total of  46.00  from holding Aveanna Healthcare Holdings or generate 8.6% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	1.56%
Values	Daily Returns

Assure Holdings Corp  vs.  Aveanna Healthcare Holdings

Assure Holdings Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Assure Holdings Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Assure Holdings is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Aveanna Healthcare

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Aveanna Healthcare Holdings are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite fairly unsteady basic indicators, Aveanna Healthcare may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Assure Holdings and Aveanna Healthcare

The main advantage of trading using opposite Assure Holdings and Aveanna Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Assure Holdings position performs unexpectedly, Aveanna Healthcare 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 Aveanna Healthcare will offset losses from the drop in Aveanna Healthcare's long position.

The idea behind Assure Holdings Corp and Aveanna Healthcare Holdings pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.