Correlation Between Elevance Health and Concentra Group
Can any of the company-specific risk be diversified away by investing in both Elevance Health and Concentra Group 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 Elevance Health and Concentra Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Elevance Health and Concentra Group Holdings, you can compare the effects of market volatilities on Elevance Health and Concentra Group 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 Elevance Health with a short position of Concentra Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elevance Health and Concentra Group.
Diversification Opportunities for Elevance Health and Concentra Group
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Elevance and Concentra is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Elevance Health and Concentra Group Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Concentra Group Holdings and Elevance Health 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 Elevance Health are associated (or correlated) with Concentra Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Concentra Group Holdings has no effect on the direction of Elevance Health i.e., Elevance Health and Concentra Group go up and down completely randomly.
Pair Corralation between Elevance Health and Concentra Group
Considering the 90-day investment horizon Elevance Health is expected to under-perform the Concentra Group. But the stock apears to be less risky and, when comparing its historical volatility, Elevance Health is 1.77 times less risky than Concentra Group. The stock trades about -0.08 of its potential returns per unit of risk. The Concentra Group Holdings is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 2,016 in Concentra Group Holdings on September 4, 2024 and sell it today you would earn a total of 137.00 from holding Concentra Group Holdings or generate 6.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Elevance Health vs. Concentra Group Holdings
Performance |
| Timeline |
| Elevance Health |
| Concentra Group Holdings |
Elevance Health and Concentra Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elevance Health and Concentra Group
The main advantage of trading using opposite Elevance Health and Concentra Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elevance Health position performs unexpectedly, Concentra Group 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 Concentra Group will offset losses from the drop in Concentra Group's long position.| Elevance Health vs. Cigna Corp | Elevance Health vs. UnitedHealth Group Incorporated | Elevance Health vs. Centene Corp | Elevance Health vs. Molina Healthcare |
| Concentra Group vs. Humana Inc | Concentra Group vs. Cigna Corp | Concentra Group vs. Elevance Health | Concentra Group vs. Centene 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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