Correlation Between Chemed Corp and Assure Holdings

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

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

Diversification Opportunities for Chemed Corp and Assure Holdings

0.62

Correlation Coefficient

Chemed Corp  Assure Holdings

Poor diversification

The 3 months correlation between Chemed and Assure is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Chemed Corp and Assure Holdings Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Assure Holdings Corp and Chemed Corp 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 Chemed Corp are associated (or correlated) with Assure Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Assure Holdings Corp has no effect on the direction of Chemed Corp i.e., Chemed Corp and Assure Holdings go up and down completely randomly.

Pair Corralation between Chemed Corp and Assure Holdings

If you would invest  68.00  in Assure Holdings Corp on October 5, 2024 and sell it today you would earn a total of  0.00  from holding Assure Holdings Corp or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	1.64%
Values	Daily Returns

Chemed Corp  vs.  Assure Holdings Corp

Chemed Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Chemed Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unsteady performance, the Stock's technical indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

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.

Pair Trading with Chemed Corp and Assure Holdings

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

The idea behind Chemed Corp and Assure Holdings Corp 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.