Correlation Between Accolade and Phreesia
Can any of the company-specific risk be diversified away by investing in both Accolade and Phreesia 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 Phreesia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Accolade and Phreesia, you can compare the effects of market volatilities on Accolade and Phreesia 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 Phreesia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Accolade and Phreesia.
Diversification Opportunities for Accolade and Phreesia
Almost no diversification
The 3 months correlation between Accolade and Phreesia is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Accolade and Phreesia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Phreesia 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 Phreesia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Phreesia has no effect on the direction of Accolade i.e., Accolade and Phreesia go up and down completely randomly.
Pair Corralation between Accolade and Phreesia
Given the investment horizon of 90 days Accolade is expected to under-perform the Phreesia. In addition to that, Accolade is 1.47 times more volatile than Phreesia. It trades about -0.04 of its total potential returns per unit of risk. Phreesia is currently generating about 0.04 per unit of volatility. If you would invest 1,787 in Phreesia on September 2, 2024 and sell it today you would earn a total of 316.00 from holding Phreesia or generate 17.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Accolade vs. Phreesia
Performance |
| Timeline |
| Accolade |
| Phreesia |
Accolade and Phreesia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Accolade and Phreesia
The main advantage of trading using opposite Accolade and Phreesia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Accolade position performs unexpectedly, Phreesia 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 Phreesia will offset losses from the drop in Phreesia's long position.| Accolade vs. Privia Health Group | Accolade vs. HealthStream | Accolade vs. National Research Corp | Accolade vs. Health Catalyst |
| Phreesia vs. Definitive Healthcare Corp | Phreesia vs. HealthStream | Phreesia vs. Certara | Phreesia vs. National Research 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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