Correlation Between JRSIS Health and Aveanna Healthcare

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

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

Diversification Opportunities for JRSIS Health and Aveanna Healthcare

-0.19

Correlation Coefficient

JRSIS Health  Aveanna Healthcare

Good diversification

The 3 months correlation between JRSIS and Aveanna is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding JRSIS Health Care and Aveanna Healthcare Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aveanna Healthcare and JRSIS Health 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 JRSIS Health Care 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 JRSIS Health i.e., JRSIS Health and Aveanna Healthcare go up and down completely randomly.

Pair Corralation between JRSIS Health and Aveanna Healthcare

Given the investment horizon of 90 days JRSIS Health Care is expected to under-perform the Aveanna Healthcare. In addition to that, JRSIS Health is 2.29 times more volatile than Aveanna Healthcare Holdings. It trades about -0.01 of its total potential returns per unit of risk. Aveanna Healthcare Holdings is currently generating about 0.02 per unit of volatility. If you would invest  454.00  in Aveanna Healthcare Holdings on September 21, 2024 and sell it today you would lose (9.00) from holding Aveanna Healthcare Holdings or give up 1.98% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	99.07%
Values	Daily Returns

JRSIS Health Care  vs.  Aveanna Healthcare Holdings

JRSIS Health Care

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days JRSIS Health Care has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest inconsistent performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Aveanna Healthcare

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Aveanna Healthcare Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in January 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with JRSIS Health and Aveanna Healthcare

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

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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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.