Correlation Between Ensign and Korian
Can any of the company-specific risk be diversified away by investing in both Ensign and Korian 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 Ensign and Korian into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Ensign Group and Korian, you can compare the effects of market volatilities on Ensign and Korian 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 Ensign with a short position of Korian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ensign and Korian.
Diversification Opportunities for Ensign and Korian
Pay attention - limited upside
The 3 months correlation between Ensign and Korian is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding The Ensign Group and Korian in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Korian and Ensign 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 The Ensign Group are associated (or correlated) with Korian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Korian has no effect on the direction of Ensign i.e., Ensign and Korian go up and down completely randomly.
Pair Corralation between Ensign and Korian
Assuming the 90 days horizon The Ensign Group is expected to under-perform the Korian. But the stock apears to be less risky and, when comparing its historical volatility, The Ensign Group is 3.76 times less risky than Korian. The stock trades about -0.16 of its potential returns per unit of risk. The Korian is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 144.00 in Korian on January 25, 2024 and sell it today you would earn a total of 14.00 from holding Korian or generate 9.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Ensign Group vs. Korian
Performance |
| Timeline |
| Ensign Group |
| Korian |
Ensign and Korian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ensign and Korian
The main advantage of trading using opposite Ensign and Korian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ensign position performs unexpectedly, Korian 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 Korian will offset losses from the drop in Korian's long position.| Ensign vs. Ultra Clean Holdings | Ensign vs. Transport International Holdings | Ensign vs. Fukuyama Transporting Co | Ensign vs. MACOM Technology Solutions |
| Korian vs. Transport International Holdings | Korian vs. MIRAMAR HOTEL INV | Korian vs. INTERCONT HOTELS | Korian vs. Transportadora de Gas |
Check out your portfolio center.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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |