Correlation Between Assure Holdings and G Medical

Can any of the company-specific risk be diversified away by investing in both Assure Holdings and G Medical 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 G Medical 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 G Medical Innovations, you can compare the effects of market volatilities on Assure Holdings and G Medical 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 G Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Assure Holdings and G Medical.

Diversification Opportunities for Assure Holdings and G Medical

0.0

Correlation Coefficient

Assure Holdings  G Medical

Pay attention - limited upside

The 3 months correlation between Assure and GMVD is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Assure Holdings Corp and G Medical Innovations in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on G Medical Innovations 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 G Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of G Medical Innovations has no effect on the direction of Assure Holdings i.e., Assure Holdings and G Medical go up and down completely randomly.

Pair Corralation between Assure Holdings and G Medical

Given the investment horizon of 90 days Assure Holdings Corp is expected to generate 0.93 times more return on investment than G Medical. However, Assure Holdings Corp is 1.07 times less risky than G Medical. It trades about -0.05 of its potential returns per unit of risk. G Medical Innovations is currently generating about -0.07 per unit of risk. If you would invest  10,080  in Assure Holdings Corp on September 23, 2024 and sell it today you would lose (10,012) from holding Assure Holdings Corp or give up 99.33% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	35.53%
Values	Daily Returns

Assure Holdings Corp  vs.  G Medical Innovations

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.

G Medical Innovations

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days G Medical Innovations has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, G Medical is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Assure Holdings and G Medical

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

The idea behind Assure Holdings Corp and G Medical Innovations 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.