Correlation Between Evolent Health and KONTIGO CARE
Can any of the company-specific risk be diversified away by investing in both Evolent Health and KONTIGO CARE 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 Evolent Health and KONTIGO CARE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Evolent Health and KONTIGO CARE AB, you can compare the effects of market volatilities on Evolent Health and KONTIGO CARE 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 Evolent Health with a short position of KONTIGO CARE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Evolent Health and KONTIGO CARE.
Diversification Opportunities for Evolent Health and KONTIGO CARE
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Evolent and KONTIGO is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Evolent Health and KONTIGO CARE AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KONTIGO CARE AB and Evolent 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 Evolent Health are associated (or correlated) with KONTIGO CARE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KONTIGO CARE AB has no effect on the direction of Evolent Health i.e., Evolent Health and KONTIGO CARE go up and down completely randomly.
Pair Corralation between Evolent Health and KONTIGO CARE
Assuming the 90 days horizon Evolent Health is expected to under-perform the KONTIGO CARE. But the stock apears to be less risky and, when comparing its historical volatility, Evolent Health is 1.66 times less risky than KONTIGO CARE. The stock trades about -0.13 of its potential returns per unit of risk. The KONTIGO CARE AB is currently generating about -0.05 of returns per unit of risk over similar time horizon. If you would invest 24.00 in KONTIGO CARE AB on September 12, 2024 and sell it today you would lose (4.00) from holding KONTIGO CARE AB or give up 16.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Evolent Health vs. KONTIGO CARE AB
Performance |
| Timeline |
| Evolent Health |
| KONTIGO CARE AB |
Evolent Health and KONTIGO CARE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Evolent Health and KONTIGO CARE
The main advantage of trading using opposite Evolent Health and KONTIGO CARE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Evolent Health position performs unexpectedly, KONTIGO CARE 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 KONTIGO CARE will offset losses from the drop in KONTIGO CARE's long position.| Evolent Health vs. CompuGroup Medical SE | Evolent Health vs. Compugroup Medical SE | Evolent Health vs. Superior Plus Corp | Evolent Health vs. NMI Holdings |
| KONTIGO CARE vs. BLUESCOPE STEEL | KONTIGO CARE vs. Strategic Education | KONTIGO CARE vs. CHINA EDUCATION GROUP | KONTIGO CARE vs. Caltagirone SpA |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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