Correlation Between CryoCell International and Aveanna Healthcare

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

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

Diversification Opportunities for CryoCell International and Aveanna Healthcare

0.5

Correlation Coefficient

CryoCell International  Aveanna Healthcare

Very weak diversification

The 3 months correlation between CryoCell and Aveanna is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding CryoCell International and Aveanna Healthcare Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aveanna Healthcare and CryoCell International 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 CryoCell International 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 CryoCell International i.e., CryoCell International and Aveanna Healthcare go up and down completely randomly.

Pair Corralation between CryoCell International and Aveanna Healthcare

Given the investment horizon of 90 days CryoCell International is expected to generate 0.79 times more return on investment than Aveanna Healthcare. However, CryoCell International is 1.26 times less risky than Aveanna Healthcare. It trades about -0.18 of its potential returns per unit of risk. Aveanna Healthcare Holdings is currently generating about -0.17 per unit of risk. If you would invest  852.00  in CryoCell International on October 10, 2024 and sell it today you would lose (77.00) from holding CryoCell International or give up 9.04% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

CryoCell International  vs.  Aveanna Healthcare Holdings

CryoCell International

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in CryoCell International are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite quite unsteady technical and fundamental indicators, CryoCell International disclosed solid returns over the last few months and may actually be approaching a breakup point.

Aveanna Healthcare

Risk-Adjusted Performance

1 of 100

Very Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Aveanna Healthcare Holdings are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong basic indicators, Aveanna Healthcare is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with CryoCell International and Aveanna Healthcare

The main advantage of trading using opposite CryoCell International and Aveanna Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CryoCell International 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 CryoCell International 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.

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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.