Correlation Between CPSI Old and Streamline Health
Can any of the company-specific risk be diversified away by investing in both CPSI Old and Streamline Health 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 CPSI Old and Streamline Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CPSI Old and Streamline Health Solutions, you can compare the effects of market volatilities on CPSI Old and Streamline Health 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 CPSI Old with a short position of Streamline Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of CPSI Old and Streamline Health.
Diversification Opportunities for CPSI Old and Streamline Health
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between CPSI and Streamline is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding CPSI Old and Streamline Health Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Streamline Health and CPSI Old 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 CPSI Old are associated (or correlated) with Streamline Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Streamline Health has no effect on the direction of CPSI Old i.e., CPSI Old and Streamline Health go up and down completely randomly.
Pair Corralation between CPSI Old and Streamline Health
If you would invest 209.00 in Streamline Health Solutions on August 28, 2024 and sell it today you would earn a total of 103.00 from holding Streamline Health Solutions or generate 49.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 4.55% |
| Values | Daily Returns |
CPSI Old vs. Streamline Health Solutions
Performance |
| Timeline |
| CPSI Old |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Streamline Health |
CPSI Old and Streamline Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CPSI Old and Streamline Health
The main advantage of trading using opposite CPSI Old and Streamline Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CPSI Old position performs unexpectedly, Streamline Health 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 Streamline Health will offset losses from the drop in Streamline Health's long position.| CPSI Old vs. National Research Corp | CPSI Old vs. Forian Inc | CPSI Old vs. HealthEquity | CPSI Old vs. Health Catalyst |
| Streamline Health vs. HealthStream | Streamline Health vs. National Research Corp | Streamline Health vs. Forian Inc | Streamline Health vs. HealthEquity |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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