Correlation Between Evolent Health and Healthcare Integrated
Can any of the company-specific risk be diversified away by investing in both Evolent Health and Healthcare Integrated 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 Healthcare Integrated into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Evolent Health and Healthcare Integrated Technologies, you can compare the effects of market volatilities on Evolent Health and Healthcare Integrated 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 Healthcare Integrated. Check out your portfolio center. Please also check ongoing floating volatility patterns of Evolent Health and Healthcare Integrated.
Diversification Opportunities for Evolent Health and Healthcare Integrated
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Evolent and Healthcare is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Evolent Health and Healthcare Integrated Technolo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Healthcare Integrated 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 Healthcare Integrated. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Healthcare Integrated has no effect on the direction of Evolent Health i.e., Evolent Health and Healthcare Integrated go up and down completely randomly.
Pair Corralation between Evolent Health and Healthcare Integrated
Considering the 90-day investment horizon Evolent Health is expected to under-perform the Healthcare Integrated. But the stock apears to be less risky and, when comparing its historical volatility, Evolent Health is 1.22 times less risky than Healthcare Integrated. The stock trades about -0.15 of its potential returns per unit of risk. The Healthcare Integrated Technologies is currently generating about 0.31 of returns per unit of risk over similar time horizon. If you would invest 14.00 in Healthcare Integrated Technologies on October 23, 2024 and sell it today you would earn a total of 4.00 from holding Healthcare Integrated Technologies or generate 28.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Evolent Health vs. Healthcare Integrated Technolo
Performance |
| Timeline |
| Evolent Health |
| Healthcare Integrated |
Evolent Health and Healthcare Integrated Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Evolent Health and Healthcare Integrated
The main advantage of trading using opposite Evolent Health and Healthcare Integrated positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Evolent Health position performs unexpectedly, Healthcare Integrated 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 Healthcare Integrated will offset losses from the drop in Healthcare Integrated's long position.| Evolent Health vs. CareMax | Evolent Health vs. Certara | Evolent Health vs. Definitive Healthcare Corp | Evolent Health vs. National Research Corp |
| Healthcare Integrated vs. Mednow Inc | Healthcare Integrated vs. Cogstate Limited | Healthcare Integrated vs. iCoreConnect Common stock | Healthcare Integrated vs. Mitesco |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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