Correlation Between Accolade and Definitive Healthcare
Can any of the company-specific risk be diversified away by investing in both Accolade and Definitive Healthcare 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 Definitive Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Accolade and Definitive Healthcare Corp, you can compare the effects of market volatilities on Accolade and Definitive Healthcare 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 Definitive Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Accolade and Definitive Healthcare.
Diversification Opportunities for Accolade and Definitive Healthcare
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Accolade and Definitive is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Accolade and Definitive Healthcare Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Definitive Healthcare 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 Definitive Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Definitive Healthcare has no effect on the direction of Accolade i.e., Accolade and Definitive Healthcare go up and down completely randomly.
Pair Corralation between Accolade and Definitive Healthcare
Given the investment horizon of 90 days Accolade is expected to generate 1.73 times more return on investment than Definitive Healthcare. However, Accolade is 1.73 times more volatile than Definitive Healthcare Corp. It trades about 0.01 of its potential returns per unit of risk. Definitive Healthcare Corp is currently generating about -0.04 per unit of risk. If you would invest 1,108 in Accolade on October 20, 2024 and sell it today you would lose (419.00) from holding Accolade or give up 37.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Accolade vs. Definitive Healthcare Corp
Performance |
| Timeline |
| Accolade |
| Definitive Healthcare |
Accolade and Definitive Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Accolade and Definitive Healthcare
The main advantage of trading using opposite Accolade and Definitive Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Accolade position performs unexpectedly, Definitive Healthcare 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 Definitive Healthcare will offset losses from the drop in Definitive Healthcare's long position.| Accolade vs. Privia Health Group | Accolade vs. HealthStream | Accolade vs. National Research Corp | Accolade vs. Health Catalyst |
| Definitive Healthcare vs. Certara | Definitive Healthcare vs. HealthStream | Definitive Healthcare vs. National Research Corp | Definitive Healthcare vs. Aquagold International |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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