Correlation Between Capital Senior and American Shared
Can any of the company-specific risk be diversified away by investing in both Capital Senior and American Shared 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 Capital Senior and American Shared into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Capital Senior Living and American Shared Hospital, you can compare the effects of market volatilities on Capital Senior and American Shared 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 Capital Senior with a short position of American Shared. Check out your portfolio center. Please also check ongoing floating volatility patterns of Capital Senior and American Shared.
Diversification Opportunities for Capital Senior and American Shared
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Capital and American is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Capital Senior Living and American Shared Hospital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Shared Hospital and Capital Senior 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 Capital Senior Living are associated (or correlated) with American Shared. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Shared Hospital has no effect on the direction of Capital Senior i.e., Capital Senior and American Shared go up and down completely randomly.
Pair Corralation between Capital Senior and American Shared
If you would invest (100.00) in Capital Senior Living on December 29, 2023 and sell it today you would earn a total of 100.00 from holding Capital Senior Living or generate -100.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Capital Senior Living vs. American Shared Hospital
Performance |
Timeline |
Capital Senior Living |
Risk-Adjusted Performance
0 of 100
Low | High |
Very Weak
American Shared Hospital |
Capital Senior and American Shared Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Capital Senior and American Shared
The main advantage of trading using opposite Capital Senior and American Shared positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Capital Senior position performs unexpectedly, American Shared 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 American Shared will offset losses from the drop in American Shared's long position.Capital Senior vs. Cedar Realty Trust | Capital Senior vs. Radcom | Capital Senior vs. Digi International | Capital Senior vs. Sabra Healthcare REIT |
American Shared vs. Microbot Medical | American Shared vs. EUDA Health Holdings | American Shared vs. Spectral AI | American Shared vs. Definitive Healthcare Corp |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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