Correlation Between Evolent Health and Airsculpt Technologies
Can any of the company-specific risk be diversified away by investing in both Evolent Health and Airsculpt Technologies 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 Evolent Health and Airsculpt Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Evolent Health and Airsculpt Technologies, you can compare the effects of market volatilities on Evolent Health and Airsculpt Technologies 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 Evolent Health with a short position of Airsculpt Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Evolent Health and Airsculpt Technologies.
Diversification Opportunities for Evolent Health and Airsculpt Technologies
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Evolent and Airsculpt is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Evolent Health and Airsculpt Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Airsculpt Technologies and Evolent 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 Evolent Health are associated (or correlated) with Airsculpt Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Airsculpt Technologies has no effect on the direction of Evolent Health i.e., Evolent Health and Airsculpt Technologies go up and down completely randomly.
Pair Corralation between Evolent Health and Airsculpt Technologies
Considering the 90-day investment horizon Evolent Health is expected to under-perform the Airsculpt Technologies. But the stock apears to be less risky and, when comparing its historical volatility, Evolent Health is 1.31 times less risky than Airsculpt Technologies. The stock trades about -0.02 of its potential returns per unit of risk. The Airsculpt Technologies is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 322.00 in Airsculpt Technologies on August 28, 2024 and sell it today you would earn a total of 402.00 from holding Airsculpt Technologies or generate 124.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Evolent Health vs. Airsculpt Technologies
Performance |
| Timeline |
| Evolent Health |
| Airsculpt Technologies |
Evolent Health and Airsculpt Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Evolent Health and Airsculpt Technologies
The main advantage of trading using opposite Evolent Health and Airsculpt Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Evolent Health position performs unexpectedly, Airsculpt Technologies 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 Airsculpt Technologies will offset losses from the drop in Airsculpt Technologies' long position.| Evolent Health vs. HealthStream | Evolent Health vs. National Research Corp | Evolent Health vs. Forian Inc | Evolent Health vs. HealthEquity |
| Airsculpt Technologies vs. Acadia Healthcare | Airsculpt Technologies vs. Pennant Group | Airsculpt Technologies vs. Amedisys | Airsculpt Technologies vs. The Ensign Group |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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