Correlation Between Enhabit and Cross Country

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Can any of the company-specific risk be diversified away by investing in both Enhabit and Cross Country 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 Enhabit and Cross Country into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Enhabit and Cross Country Healthcare, you can compare the effects of market volatilities on Enhabit and Cross Country 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 Enhabit with a short position of Cross Country. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enhabit and Cross Country.

Diversification Opportunities for Enhabit and Cross Country

-0.72
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Enhabit and Cross is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Enhabit and Cross Country Healthcare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cross Country Healthcare and Enhabit 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 Enhabit are associated (or correlated) with Cross Country. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cross Country Healthcare has no effect on the direction of Enhabit i.e., Enhabit and Cross Country go up and down completely randomly.

Pair Corralation between Enhabit and Cross Country

Given the investment horizon of 90 days Enhabit is expected to generate 0.53 times more return on investment than Cross Country. However, Enhabit is 1.9 times less risky than Cross Country. It trades about 0.12 of its potential returns per unit of risk. Cross Country Healthcare is currently generating about -0.17 per unit of risk. If you would invest  787.00  in Enhabit on September 9, 2025 and sell it today you would earn a total of  146.00  from holding Enhabit or generate 18.55% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Enhabit  vs.  Cross Country Healthcare

 Performance 
       Timeline  
Enhabit 

Risk-Adjusted Performance

Fair

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Enhabit are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite somewhat inconsistent basic indicators, Enhabit sustained solid returns over the last few months and may actually be approaching a breakup point.
Cross Country Healthcare 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Cross Country Healthcare has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in January 2026. The recent disarray may also be a sign of long period up-swing for the firm investors.

Enhabit and Cross Country Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Enhabit and Cross Country

The main advantage of trading using opposite Enhabit and Cross Country positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enhabit position performs unexpectedly, Cross Country 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 Cross Country will offset losses from the drop in Cross Country's long position.
The idea behind Enhabit and Cross Country Healthcare 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.
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.

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