Correlation Between Assure Holdings and Novo Integrated

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

Diversification Opportunities for Assure Holdings and Novo Integrated

0.89

Correlation Coefficient

Assure Holdings  Novo Integrated

Very poor diversification

The 3 months correlation between Assure and Novo is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Assure Holdings Corp and Novo Integrated Sciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Novo Integrated Sciences 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 Novo Integrated. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Novo Integrated Sciences has no effect on the direction of Assure Holdings i.e., Assure Holdings and Novo Integrated go up and down completely randomly.

Pair Corralation between Assure Holdings and Novo Integrated

Given the investment horizon of 90 days Assure Holdings Corp is expected to under-perform the Novo Integrated. But the stock apears to be less risky and, when comparing its historical volatility, Assure Holdings Corp is 1.18 times less risky than Novo Integrated. The stock trades about -0.05 of its potential returns per unit of risk. The Novo Integrated Sciences is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest  183.00  in Novo Integrated Sciences on September 24, 2024 and sell it today you would lose (178.59) from holding Novo Integrated Sciences or give up 97.59% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	83.83%
Values	Daily Returns

Assure Holdings Corp  vs.  Novo Integrated Sciences

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.

Novo Integrated Sciences

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Novo Integrated Sciences has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of abnormal performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in January 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Assure Holdings and Novo Integrated

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

The idea behind Assure Holdings Corp and Novo Integrated Sciences 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..