Correlation Between Healthcare Integrated and Evolent Health
Can any of the company-specific risk be diversified away by investing in both Healthcare Integrated and Evolent 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 Healthcare Integrated and Evolent Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Healthcare Integrated Technologies and Evolent Health, you can compare the effects of market volatilities on Healthcare Integrated and Evolent 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 Healthcare Integrated with a short position of Evolent Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Healthcare Integrated and Evolent Health.
Diversification Opportunities for Healthcare Integrated and Evolent Health
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Healthcare and Evolent is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Healthcare Integrated Technolo and Evolent Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Evolent Health and Healthcare Integrated 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 Healthcare Integrated Technologies are associated (or correlated) with Evolent Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Evolent Health has no effect on the direction of Healthcare Integrated i.e., Healthcare Integrated and Evolent Health go up and down completely randomly.
Pair Corralation between Healthcare Integrated and Evolent Health
Given the investment horizon of 90 days Healthcare Integrated Technologies is expected to generate 1.22 times more return on investment than Evolent Health. However, Healthcare Integrated is 1.22 times more volatile than Evolent Health. It trades about 0.31 of its potential returns per unit of risk. Evolent Health is currently generating about -0.15 per unit of risk. If you would invest 14.00 in Healthcare Integrated Technologies on October 23, 2024 and sell it today you would earn a total of 4.00 from holding Healthcare Integrated Technologies or generate 28.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Healthcare Integrated Technolo vs. Evolent Health
Performance |
| Timeline |
| Healthcare Integrated |
| Evolent Health |
Healthcare Integrated and Evolent Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Healthcare Integrated and Evolent Health
The main advantage of trading using opposite Healthcare Integrated and Evolent Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Healthcare Integrated position performs unexpectedly, Evolent 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 Evolent Health will offset losses from the drop in Evolent Health's long position.| Healthcare Integrated vs. Mednow Inc | Healthcare Integrated vs. Cogstate Limited | Healthcare Integrated vs. iCoreConnect Common stock | Healthcare Integrated vs. Mitesco |
| Evolent Health vs. CareMax | Evolent Health vs. Certara | Evolent Health vs. Definitive Healthcare Corp | Evolent 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |