Correlation Between Health Catalyst and Certara
Can any of the company-specific risk be diversified away by investing in both Health Catalyst and Certara 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 Health Catalyst and Certara into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Health Catalyst and Certara, you can compare the effects of market volatilities on Health Catalyst and Certara 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 Health Catalyst with a short position of Certara. Check out your portfolio center. Please also check ongoing floating volatility patterns of Health Catalyst and Certara.
Diversification Opportunities for Health Catalyst and Certara
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Health and Certara is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Health Catalyst and Certara in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Certara and Health Catalyst 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 Health Catalyst are associated (or correlated) with Certara. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Certara has no effect on the direction of Health Catalyst i.e., Health Catalyst and Certara go up and down completely randomly.
Pair Corralation between Health Catalyst and Certara
Given the investment horizon of 90 days Health Catalyst is expected to under-perform the Certara. In addition to that, Health Catalyst is 1.25 times more volatile than Certara. It trades about -0.1 of its total potential returns per unit of risk. Certara is currently generating about 0.1 per unit of volatility. If you would invest 1,137 in Certara on November 1, 2024 and sell it today you would earn a total of 252.00 from holding Certara or generate 22.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Health Catalyst vs. Certara
Performance |
| Timeline |
| Health Catalyst |
| Certara |
Health Catalyst and Certara Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Health Catalyst and Certara
The main advantage of trading using opposite Health Catalyst and Certara positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Health Catalyst position performs unexpectedly, Certara 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 Certara will offset losses from the drop in Certara's long position.| Health Catalyst vs. National Research Corp | Health Catalyst vs. Certara | Health Catalyst vs. HealthStream | Health Catalyst vs. Forian Inc |
| Certara vs. National Research Corp | Certara vs. Health Catalyst | Certara vs. HealthStream | Certara 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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