Correlation Between Tenet Healthcare and Assure Holdings

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

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

Diversification Opportunities for Tenet Healthcare and Assure Holdings

0.0

Correlation Coefficient

Tenet Healthcare  Assure Holdings

Pay attention - limited upside

The 3 months correlation between Tenet and Assure is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Tenet Healthcare 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 Tenet Healthcare 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 Tenet Healthcare 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 Tenet Healthcare i.e., Tenet Healthcare and Assure Holdings go up and down completely randomly.

Pair Corralation between Tenet Healthcare and Assure Holdings

If you would invest  12,570  in Tenet Healthcare on October 20, 2024 and sell it today you would earn a total of  516.00  from holding Tenet Healthcare or generate 4.11% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	5.0%
Values	Daily Returns

Tenet Healthcare  vs.  Assure Holdings Corp

Tenet Healthcare

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Tenet Healthcare has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's technical indicators remain rather sound which may send shares a bit higher in February 2025. The latest tumult may also be a sign of longer-term up-swing 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 Tenet Healthcare and Assure Holdings

The main advantage of trading using opposite Tenet Healthcare and Assure Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tenet Healthcare 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 Tenet Healthcare 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.