Correlation Between Accolade and Forian
Can any of the company-specific risk be diversified away by investing in both Accolade and Forian 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 Forian into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Accolade and Forian Inc, you can compare the effects of market volatilities on Accolade and Forian 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 Forian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Accolade and Forian.
Diversification Opportunities for Accolade and Forian
Very weak diversification
The 3 months correlation between Accolade and Forian is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Accolade and Forian Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Forian Inc 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 Forian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Forian Inc has no effect on the direction of Accolade i.e., Accolade and Forian go up and down completely randomly.
Pair Corralation between Accolade and Forian
Given the investment horizon of 90 days Accolade is expected to generate 10.27 times less return on investment than Forian. But when comparing it to its historical volatility, Accolade is 32.0 times less risky than Forian. It trades about 0.2 of its potential returns per unit of risk. Forian Inc is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 215.00 in Forian Inc on November 29, 2024 and sell it today you would earn a total of 10.00 from holding Forian Inc or generate 4.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Accolade vs. Forian Inc
Performance |
| Timeline |
| Accolade |
| Forian Inc |
Accolade and Forian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Accolade and Forian
The main advantage of trading using opposite Accolade and Forian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Accolade position performs unexpectedly, Forian 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 Forian will offset losses from the drop in Forian's long position.| Accolade vs. Privia Health Group | Accolade vs. HealthStream | Accolade vs. National Research Corp | Accolade vs. Health Catalyst |
| Forian vs. HealthStream | Forian vs. National Research Corp | Forian vs. HealthEquity | Forian vs. Health Catalyst |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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