Correlation Between Assure Holdings and Oncology Institute

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

Diversification Opportunities for Assure Holdings and Oncology Institute

0.6

Correlation Coefficient

Assure Holdings  Oncology Institute

Poor diversification

The 3 months correlation between Assure and Oncology is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Assure Holdings Corp and Oncology Institute in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oncology Institute 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 Oncology Institute. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oncology Institute has no effect on the direction of Assure Holdings i.e., Assure Holdings and Oncology Institute go up and down completely randomly.

Pair Corralation between Assure Holdings and Oncology Institute

Given the investment horizon of 90 days Assure Holdings Corp is expected to under-perform the Oncology Institute. In addition to that, Assure Holdings is 2.39 times more volatile than Oncology Institute. It trades about -0.15 of its total potential returns per unit of risk. Oncology Institute is currently generating about -0.1 per unit of volatility. If you would invest  109.00  in Oncology Institute on September 24, 2024 and sell it today you would lose (88.00) from holding Oncology Institute or give up 80.73% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	37.95%
Values	Daily Returns

Assure Holdings Corp  vs.  Oncology Institute

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.

Oncology Institute

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Oncology Institute has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the firm traders.

Pair Trading with Assure Holdings and Oncology Institute

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

The idea behind Assure Holdings Corp and Oncology Institute 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.