Correlation Between Evolent Health and Nutex Health
Can any of the company-specific risk be diversified away by investing in both Evolent Health and Nutex Health 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 Nutex Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Evolent Health and Nutex Health, you can compare the effects of market volatilities on Evolent Health and Nutex Health 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 Nutex Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Evolent Health and Nutex Health.
Diversification Opportunities for Evolent Health and Nutex Health
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Evolent and Nutex is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Evolent Health and Nutex Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nutex Health 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 Nutex Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nutex Health has no effect on the direction of Evolent Health i.e., Evolent Health and Nutex Health go up and down completely randomly.
Pair Corralation between Evolent Health and Nutex Health
Considering the 90-day investment horizon Evolent Health is expected to under-perform the Nutex Health. But the stock apears to be less risky and, when comparing its historical volatility, Evolent Health is 1.6 times less risky than Nutex Health. The stock trades about -0.05 of its potential returns per unit of risk. The Nutex Health is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 3,285 in Nutex Health on August 25, 2024 and sell it today you would earn a total of 6.00 from holding Nutex Health or generate 0.18% 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. Nutex Health
Performance |
| Timeline |
| Evolent Health |
| Nutex Health |
Evolent Health and Nutex Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Evolent Health and Nutex Health
The main advantage of trading using opposite Evolent Health and Nutex Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Evolent Health position performs unexpectedly, Nutex Health 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 Nutex Health will offset losses from the drop in Nutex Health's long position.| Evolent Health vs. CareMax | Evolent Health vs. Certara | Evolent Health vs. R1 RCM Inc | Evolent Health vs. Definitive Healthcare Corp |
| Nutex Health vs. FOXO Technologies | Nutex Health vs. Heartbeam | Nutex Health vs. EUDA Health Holdings | Nutex Health vs. Privia Health 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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