Correlation Between Evolent Health and MaxCyte
Can any of the company-specific risk be diversified away by investing in both Evolent Health and MaxCyte 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 MaxCyte into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Evolent Health and MaxCyte, you can compare the effects of market volatilities on Evolent Health and MaxCyte 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 MaxCyte. Check out your portfolio center. Please also check ongoing floating volatility patterns of Evolent Health and MaxCyte.
Diversification Opportunities for Evolent Health and MaxCyte
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Evolent and MaxCyte is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Evolent Health and MaxCyte in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MaxCyte 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 MaxCyte. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MaxCyte has no effect on the direction of Evolent Health i.e., Evolent Health and MaxCyte go up and down completely randomly.
Pair Corralation between Evolent Health and MaxCyte
Considering the 90-day investment horizon Evolent Health is expected to under-perform the MaxCyte. In addition to that, Evolent Health is 2.93 times more volatile than MaxCyte. It trades about -0.25 of its total potential returns per unit of risk. MaxCyte is currently generating about 0.0 per unit of volatility. If you would invest 361.00 in MaxCyte on August 27, 2024 and sell it today you would lose (6.00) from holding MaxCyte or give up 1.66% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Evolent Health vs. MaxCyte
Performance |
| Timeline |
| Evolent Health |
| MaxCyte |
Evolent Health and MaxCyte Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Evolent Health and MaxCyte
The main advantage of trading using opposite Evolent Health and MaxCyte positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Evolent Health position performs unexpectedly, MaxCyte 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 MaxCyte will offset losses from the drop in MaxCyte's long position.| Evolent Health vs. CareMax | Evolent Health vs. Certara | Evolent Health vs. R1 RCM Inc | Evolent Health vs. Definitive Healthcare Corp |
| MaxCyte vs. Sight Sciences | MaxCyte vs. CVRx Inc | MaxCyte vs. Neuropace | MaxCyte vs. Rapid Micro Biosystems |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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