Correlation Between Accolade and HealthStream
Can any of the company-specific risk be diversified away by investing in both Accolade and HealthStream 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 HealthStream into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Accolade and HealthStream, you can compare the effects of market volatilities on Accolade and HealthStream 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 HealthStream. Check out your portfolio center. Please also check ongoing floating volatility patterns of Accolade and HealthStream.
Diversification Opportunities for Accolade and HealthStream
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Accolade and HealthStream is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Accolade and HealthStream in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HealthStream 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 HealthStream. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HealthStream has no effect on the direction of Accolade i.e., Accolade and HealthStream go up and down completely randomly.
Pair Corralation between Accolade and HealthStream
Given the investment horizon of 90 days Accolade is expected to generate 0.25 times more return on investment than HealthStream. However, Accolade is 4.08 times less risky than HealthStream. It trades about 0.2 of its potential returns per unit of risk. HealthStream is currently generating about -0.03 per unit of risk. If you would invest 688.00 in Accolade on November 29, 2024 and sell it today you would earn a total of 8.00 from holding Accolade or generate 1.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Accolade vs. HealthStream
Performance |
| Timeline |
| Accolade |
| HealthStream |
Accolade and HealthStream Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Accolade and HealthStream
The main advantage of trading using opposite Accolade and HealthStream positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Accolade position performs unexpectedly, HealthStream 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 HealthStream will offset losses from the drop in HealthStream's long position.| Accolade vs. Privia Health Group | Accolade vs. HealthStream | Accolade vs. National Research Corp | Accolade vs. Health Catalyst |
| HealthStream vs. National Research Corp | HealthStream vs. Forian Inc | HealthStream vs. Streamline Health Solutions | HealthStream 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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