Correlation Between Evolent Health and Signify Health
Can any of the company-specific risk be diversified away by investing in both Evolent Health and Signify 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 Signify 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 Signify Health, you can compare the effects of market volatilities on Evolent Health and Signify 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 Signify Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Evolent Health and Signify Health.
Diversification Opportunities for Evolent Health and Signify Health
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Evolent and Signify is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Evolent Health and Signify Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Signify 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 Signify Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Signify Health has no effect on the direction of Evolent Health i.e., Evolent Health and Signify Health go up and down completely randomly.
Pair Corralation between Evolent Health and Signify Health
If you would invest 3,049 in Signify Health on August 30, 2024 and sell it today you would earn a total of 0.00 from holding Signify Health or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Evolent Health vs. Signify Health
Performance |
| Timeline |
| Evolent Health |
| Signify Health |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Evolent Health and Signify Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Evolent Health and Signify Health
The main advantage of trading using opposite Evolent Health and Signify Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Evolent Health position performs unexpectedly, Signify 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 Signify Health will offset losses from the drop in Signify Health's long position.| Evolent Health vs. Veeva Systems Class | Evolent Health vs. 10X Genomics | Evolent Health vs. GE HealthCare Technologies | Evolent Health vs. Progyny |
| Signify Health vs. Evolent Health | Signify Health vs. CareMax | Signify Health vs. Certara | Signify Health vs. National Research Corp |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |