Correlation Between Evolent Health and NIGHTINGALE HEALTH
Can any of the company-specific risk be diversified away by investing in both Evolent Health and NIGHTINGALE 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 Evolent Health and NIGHTINGALE HEALTH into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Evolent Health and NIGHTINGALE HEALTH EO, you can compare the effects of market volatilities on Evolent Health and NIGHTINGALE 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 Evolent Health with a short position of NIGHTINGALE HEALTH. Check out your portfolio center. Please also check ongoing floating volatility patterns of Evolent Health and NIGHTINGALE HEALTH.
Diversification Opportunities for Evolent Health and NIGHTINGALE HEALTH
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Evolent and NIGHTINGALE is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Evolent Health and NIGHTINGALE HEALTH EO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NIGHTINGALE HEALTH 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 NIGHTINGALE HEALTH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NIGHTINGALE HEALTH has no effect on the direction of Evolent Health i.e., Evolent Health and NIGHTINGALE HEALTH go up and down completely randomly.
Pair Corralation between Evolent Health and NIGHTINGALE HEALTH
Assuming the 90 days horizon Evolent Health is expected to under-perform the NIGHTINGALE HEALTH. In addition to that, Evolent Health is 2.99 times more volatile than NIGHTINGALE HEALTH EO. It trades about -0.2 of its total potential returns per unit of risk. NIGHTINGALE HEALTH EO is currently generating about -0.19 per unit of volatility. If you would invest 344.00 in NIGHTINGALE HEALTH EO on September 4, 2024 and sell it today you would lose (48.00) from holding NIGHTINGALE HEALTH EO or give up 13.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Evolent Health vs. NIGHTINGALE HEALTH EO
Performance |
| Timeline |
| Evolent Health |
| NIGHTINGALE HEALTH |
Evolent Health and NIGHTINGALE HEALTH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Evolent Health and NIGHTINGALE HEALTH
The main advantage of trading using opposite Evolent Health and NIGHTINGALE HEALTH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Evolent Health position performs unexpectedly, NIGHTINGALE 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 NIGHTINGALE HEALTH will offset losses from the drop in NIGHTINGALE HEALTH's long position.| Evolent Health vs. 10X GENOMICS DL | Evolent Health vs. Teladoc | Evolent Health vs. RLX TECH SPADR1 | Evolent Health vs. CompuGroup Medical SE |
| NIGHTINGALE HEALTH vs. ANTA SPORTS PRODUCT | NIGHTINGALE HEALTH vs. NH HOTEL GROUP | NIGHTINGALE HEALTH vs. COVIVIO HOTELS INH | NIGHTINGALE HEALTH vs. Ultra Clean Holdings |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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