Correlation Between Evolent Health and Mednow
Can any of the company-specific risk be diversified away by investing in both Evolent Health and Mednow 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 Mednow into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Evolent Health and Mednow Inc, you can compare the effects of market volatilities on Evolent Health and Mednow 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 Mednow. Check out your portfolio center. Please also check ongoing floating volatility patterns of Evolent Health and Mednow.
Diversification Opportunities for Evolent Health and Mednow
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Evolent and Mednow is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Evolent Health and Mednow Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mednow Inc 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 Mednow. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mednow Inc has no effect on the direction of Evolent Health i.e., Evolent Health and Mednow go up and down completely randomly.
Pair Corralation between Evolent Health and Mednow
Considering the 90-day investment horizon Evolent Health is expected to under-perform the Mednow. But the stock apears to be less risky and, when comparing its historical volatility, Evolent Health is 16.85 times less risky than Mednow. The stock trades about -0.02 of its potential returns per unit of risk. The Mednow Inc is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 20.00 in Mednow Inc on August 30, 2024 and sell it today you would lose (18.00) from holding Mednow Inc or give up 90.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Evolent Health vs. Mednow Inc
Performance |
| Timeline |
| Evolent Health |
| Mednow Inc |
Evolent Health and Mednow Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Evolent Health and Mednow
The main advantage of trading using opposite Evolent Health and Mednow positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Evolent Health position performs unexpectedly, Mednow 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 Mednow will offset losses from the drop in Mednow's long position.| Evolent Health vs. Veeva Systems Class | Evolent Health vs. 10X Genomics | Evolent Health vs. GE HealthCare Technologies | Evolent Health vs. Progyny |
| Mednow vs. Healthcare Triangle | Mednow vs. Bullfrog AI Holdings, | Mednow vs. Caduceus Software Systems | Mednow vs. Cloud DX |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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