Correlation Between Healthcare Integrated and So Young
Can any of the company-specific risk be diversified away by investing in both Healthcare Integrated 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 Healthcare Integrated and So Young 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 So Young International, you can compare the effects of market volatilities on Healthcare Integrated 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 Healthcare Integrated with a short position of So Young. Check out your portfolio center. Please also check ongoing floating volatility patterns of Healthcare Integrated and So Young.
Diversification Opportunities for Healthcare Integrated and So Young
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Healthcare and So Young is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Healthcare Integrated Technolo 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 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 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 Healthcare Integrated i.e., Healthcare Integrated and So Young go up and down completely randomly.
Pair Corralation between Healthcare Integrated and So Young
Given the investment horizon of 90 days Healthcare Integrated Technologies is expected to generate 2.28 times more return on investment than So Young. However, Healthcare Integrated is 2.28 times more volatile than So Young International. It trades about 0.04 of its potential returns per unit of risk. So Young International is currently generating about -0.02 per unit of risk. If you would invest 13.00 in Healthcare Integrated Technologies on September 1, 2024 and sell it today you would lose (1.00) from holding Healthcare Integrated Technologies or give up 7.69% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Healthcare Integrated Technolo vs. So Young International
Performance |
| Timeline |
| Healthcare Integrated |
| So Young International |
Healthcare Integrated and So Young Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Healthcare Integrated and So Young
The main advantage of trading using opposite Healthcare Integrated and So Young positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Healthcare Integrated 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.| Healthcare Integrated vs. GE HealthCare Technologies | Healthcare Integrated vs. Veeva Systems Class | Healthcare Integrated vs. Solventum Corp | Healthcare Integrated vs. Doximity |
| 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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