Correlation Between PKSHA TECHNOLOGY and Evolent Health
Can any of the company-specific risk be diversified away by investing in both PKSHA TECHNOLOGY and Evolent Health 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 PKSHA TECHNOLOGY and Evolent Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PKSHA TECHNOLOGY INC and Evolent Health, you can compare the effects of market volatilities on PKSHA TECHNOLOGY and Evolent Health 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 PKSHA TECHNOLOGY with a short position of Evolent Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of PKSHA TECHNOLOGY and Evolent Health.
Diversification Opportunities for PKSHA TECHNOLOGY and Evolent Health
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PKSHA and Evolent is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding PKSHA TECHNOLOGY INC and Evolent Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Evolent Health and PKSHA TECHNOLOGY 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 PKSHA TECHNOLOGY INC are associated (or correlated) with Evolent Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Evolent Health has no effect on the direction of PKSHA TECHNOLOGY i.e., PKSHA TECHNOLOGY and Evolent Health go up and down completely randomly.
Pair Corralation between PKSHA TECHNOLOGY and Evolent Health
Assuming the 90 days horizon PKSHA TECHNOLOGY INC is expected to generate 0.87 times more return on investment than Evolent Health. However, PKSHA TECHNOLOGY INC is 1.15 times less risky than Evolent Health. It trades about -0.09 of its potential returns per unit of risk. Evolent Health is currently generating about -0.12 per unit of risk. If you would invest 2,400 in PKSHA TECHNOLOGY INC on November 5, 2024 and sell it today you would lose (180.00) from holding PKSHA TECHNOLOGY INC or give up 7.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PKSHA TECHNOLOGY INC vs. Evolent Health
Performance |
| Timeline |
| PKSHA TECHNOLOGY INC |
| Evolent Health |
PKSHA TECHNOLOGY and Evolent Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PKSHA TECHNOLOGY and Evolent Health
The main advantage of trading using opposite PKSHA TECHNOLOGY and Evolent Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PKSHA TECHNOLOGY position performs unexpectedly, Evolent Health 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 Evolent Health will offset losses from the drop in Evolent Health's long position.| PKSHA TECHNOLOGY vs. Coffee Holding Co | PKSHA TECHNOLOGY vs. Luckin Coffee | PKSHA TECHNOLOGY vs. United Airlines Holdings | PKSHA TECHNOLOGY vs. China Eastern Airlines |
| Evolent Health vs. Veeva Systems | Evolent Health vs. 10X GENOMICS DL | Evolent Health vs. COMPUGROUP MEDSPADR 1 | Evolent Health vs. CompuGroup Medical SE |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |