Correlation Between Regional Health and American Shared

Can any of the company-specific risk be diversified away by investing in both Regional Health 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 Regional Health and American Shared into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Regional Health Properties, and American Shared Hospital, you can compare the effects of market volatilities on Regional Health 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 Regional Health with a short position of American Shared. Check out your portfolio center. Please also check ongoing floating volatility patterns of Regional Health and American Shared.

Diversification Opportunities for Regional Health and American Shared

0.0

Correlation Coefficient

Regional Health  American Shared

Pay attention - limited upside

The 3 months correlation between Regional and American is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Regional Health Properties, 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 Regional Health 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 Regional Health Properties, 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 Regional Health i.e., Regional Health and American Shared go up and down completely randomly.

Pair Corralation between Regional Health and American Shared

If you would invest (100.00) in Regional Health Properties, on May 7, 2025 and sell it today you would earn a total of  100.00  from holding Regional Health Properties, 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

Regional Health Properties,  vs.  American Shared Hospital

Regional Health Prop

Risk-Adjusted Performance

Very Weak

Over the last 90 days Regional Health Properties, has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable technical and fundamental indicators, Regional Health is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

American Shared Hospital

Risk-Adjusted Performance

Very Weak

Over the last 90 days American Shared Hospital has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest conflicting performance, the Stock's primary indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with Regional Health and American Shared

The main advantage of trading using opposite Regional Health and American Shared positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Regional Health 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.

The idea behind Regional Health Properties, and American Shared Hospital 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..