Correlation Between Accolade and American Well
Can any of the company-specific risk be diversified away by investing in both Accolade and American Well 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 Accolade and American Well into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Accolade and American Well Corp, you can compare the effects of market volatilities on Accolade and American Well 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 Accolade with a short position of American Well. Check out your portfolio center. Please also check ongoing floating volatility patterns of Accolade and American Well.
Diversification Opportunities for Accolade and American Well
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Accolade and American is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Accolade and American Well Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Well Corp and Accolade 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 Accolade are associated (or correlated) with American Well. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Well Corp has no effect on the direction of Accolade i.e., Accolade and American Well go up and down completely randomly.
Pair Corralation between Accolade and American Well
Given the investment horizon of 90 days Accolade is expected to generate 2.77 times more return on investment than American Well. However, Accolade is 2.77 times more volatile than American Well Corp. It trades about 0.13 of its potential returns per unit of risk. American Well Corp is currently generating about 0.0 per unit of risk. If you would invest 338.00 in Accolade on October 20, 2024 and sell it today you would earn a total of 351.00 from holding Accolade or generate 103.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Accolade vs. American Well Corp
Performance |
| Timeline |
| Accolade |
| American Well Corp |
Accolade and American Well Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Accolade and American Well
The main advantage of trading using opposite Accolade and American Well positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Accolade position performs unexpectedly, American Well 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 American Well will offset losses from the drop in American Well's long position.| Accolade vs. Privia Health Group | Accolade vs. HealthStream | Accolade vs. National Research Corp | Accolade vs. Health Catalyst |
| American Well vs. Doximity | American Well vs. Certara | American Well vs. Teladoc | American Well vs. Definitive Healthcare Corp |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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