Correlation Between Accolade and HealthEquity
Can any of the company-specific risk be diversified away by investing in both Accolade and HealthEquity 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 HealthEquity into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Accolade and HealthEquity, you can compare the effects of market volatilities on Accolade and HealthEquity 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 HealthEquity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Accolade and HealthEquity.
Diversification Opportunities for Accolade and HealthEquity
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Accolade and HealthEquity is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Accolade and HealthEquity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HealthEquity 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 HealthEquity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HealthEquity has no effect on the direction of Accolade i.e., Accolade and HealthEquity go up and down completely randomly.
Pair Corralation between Accolade and HealthEquity
Given the investment horizon of 90 days Accolade is expected to under-perform the HealthEquity. In addition to that, Accolade is 2.44 times more volatile than HealthEquity. It trades about -0.04 of its total potential returns per unit of risk. HealthEquity is currently generating about 0.09 per unit of volatility. If you would invest 6,772 in HealthEquity on September 2, 2024 and sell it today you would earn a total of 3,382 from holding HealthEquity or generate 49.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Accolade vs. HealthEquity
Performance |
| Timeline |
| Accolade |
| HealthEquity |
Accolade and HealthEquity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Accolade and HealthEquity
The main advantage of trading using opposite Accolade and HealthEquity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Accolade position performs unexpectedly, HealthEquity 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 HealthEquity will offset losses from the drop in HealthEquity's long position.| Accolade vs. Privia Health Group | Accolade vs. HealthStream | Accolade vs. National Research Corp | Accolade vs. Health Catalyst |
| HealthEquity vs. Ollies Bargain Outlet | HealthEquity vs. Appfolio | HealthEquity vs. Grand Canyon Education | HealthEquity vs. Globus Medical |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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