Correlation Between Evolent Health and OAKRIDGE INTERNATIONAL
Can any of the company-specific risk be diversified away by investing in both Evolent Health and OAKRIDGE INTERNATIONAL 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 OAKRIDGE INTERNATIONAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Evolent Health and OAKRIDGE INTERNATIONAL, you can compare the effects of market volatilities on Evolent Health and OAKRIDGE INTERNATIONAL 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 OAKRIDGE INTERNATIONAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Evolent Health and OAKRIDGE INTERNATIONAL.
Diversification Opportunities for Evolent Health and OAKRIDGE INTERNATIONAL
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Evolent and OAKRIDGE is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Evolent Health and OAKRIDGE INTERNATIONAL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OAKRIDGE INTERNATIONAL 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 OAKRIDGE INTERNATIONAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OAKRIDGE INTERNATIONAL has no effect on the direction of Evolent Health i.e., Evolent Health and OAKRIDGE INTERNATIONAL go up and down completely randomly.
Pair Corralation between Evolent Health and OAKRIDGE INTERNATIONAL
Assuming the 90 days horizon Evolent Health is expected to under-perform the OAKRIDGE INTERNATIONAL. But the stock apears to be less risky and, when comparing its historical volatility, Evolent Health is 1.55 times less risky than OAKRIDGE INTERNATIONAL. The stock trades about -0.13 of its potential returns per unit of risk. The OAKRIDGE INTERNATIONAL is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 3.30 in OAKRIDGE INTERNATIONAL on September 12, 2024 and sell it today you would lose (0.30) from holding OAKRIDGE INTERNATIONAL or give up 9.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Evolent Health vs. OAKRIDGE INTERNATIONAL
Performance |
| Timeline |
| Evolent Health |
| OAKRIDGE INTERNATIONAL |
Evolent Health and OAKRIDGE INTERNATIONAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Evolent Health and OAKRIDGE INTERNATIONAL
The main advantage of trading using opposite Evolent Health and OAKRIDGE INTERNATIONAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Evolent Health position performs unexpectedly, OAKRIDGE INTERNATIONAL 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 OAKRIDGE INTERNATIONAL will offset losses from the drop in OAKRIDGE INTERNATIONAL'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 |
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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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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