Correlation Between Evolent Health and Beyond Air
Can any of the company-specific risk be diversified away by investing in both Evolent Health and Beyond Air 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 Beyond Air into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Evolent Health and Beyond Air, you can compare the effects of market volatilities on Evolent Health and Beyond Air 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 Beyond Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of Evolent Health and Beyond Air.
Diversification Opportunities for Evolent Health and Beyond Air
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Evolent and Beyond is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Evolent Health and Beyond Air in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beyond Air 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 Beyond Air. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beyond Air has no effect on the direction of Evolent Health i.e., Evolent Health and Beyond Air go up and down completely randomly.
Pair Corralation between Evolent Health and Beyond Air
Considering the 90-day investment horizon Evolent Health is expected to under-perform the Beyond Air. But the stock apears to be less risky and, when comparing its historical volatility, Evolent Health is 1.54 times less risky than Beyond Air. The stock trades about -0.06 of its potential returns per unit of risk. The Beyond Air is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 153.00 in Beyond Air on August 24, 2024 and sell it today you would lose (101.00) from holding Beyond Air or give up 66.01% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Evolent Health vs. Beyond Air
Performance |
| Timeline |
| Evolent Health |
| Beyond Air |
Evolent Health and Beyond Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Evolent Health and Beyond Air
The main advantage of trading using opposite Evolent Health and Beyond Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Evolent Health position performs unexpectedly, Beyond Air 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 Beyond Air will offset losses from the drop in Beyond Air's long position.| Evolent Health vs. HealthStream | Evolent Health vs. National Research Corp | Evolent Health vs. HealthEquity | Evolent Health vs. Health Catalyst |
| Beyond Air vs. Lucid Diagnostics | Beyond Air vs. Inari Medical | Beyond Air vs. Clearpoint Neuro | Beyond Air vs. Avita Medical |
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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