Correlation Between Evolent Health and So Young
Can any of the company-specific risk be diversified away by investing in both Evolent Health and So Young 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 So Young into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Evolent Health and So Young International, you can compare the effects of market volatilities on Evolent Health and So Young 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 So Young. Check out your portfolio center. Please also check ongoing floating volatility patterns of Evolent Health and So Young.
Diversification Opportunities for Evolent Health and So Young
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Evolent and So Young is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Evolent Health and So Young International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on So Young International 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 So Young. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of So Young International has no effect on the direction of Evolent Health i.e., Evolent Health and So Young go up and down completely randomly.
Pair Corralation between Evolent Health and So Young
Considering the 90-day investment horizon Evolent Health is expected to under-perform the So Young. In addition to that, Evolent Health is 1.06 times more volatile than So Young International. It trades about -0.15 of its total potential returns per unit of risk. So Young International is currently generating about 0.3 per unit of volatility. If you would invest 77.00 in So Young International on October 23, 2024 and sell it today you would earn a total of 16.00 from holding So Young International or generate 20.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Evolent Health vs. So Young International
Performance |
| Timeline |
| Evolent Health |
| So Young International |
Evolent Health and So Young Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Evolent Health and So Young
The main advantage of trading using opposite Evolent Health and So Young positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Evolent Health position performs unexpectedly, So Young 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 So Young will offset losses from the drop in So Young's long position.| Evolent Health vs. CareMax | Evolent Health vs. Certara | Evolent Health vs. Definitive Healthcare Corp | Evolent Health vs. National Research Corp |
| So Young vs. National Research Corp | So Young vs. Definitive Healthcare Corp | So Young vs. HealthStream | So Young vs. Streamline Health Solutions |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Stocks Directory Find actively traded stocks across global markets | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |