Correlation Between HealthEquity and Certara
Can any of the company-specific risk be diversified away by investing in both HealthEquity 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 HealthEquity and Certara into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HealthEquity and Certara, you can compare the effects of market volatilities on HealthEquity 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 HealthEquity with a short position of Certara. Check out your portfolio center. Please also check ongoing floating volatility patterns of HealthEquity and Certara.
Diversification Opportunities for HealthEquity and Certara
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between HealthEquity and Certara is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding HealthEquity and Certara in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Certara and HealthEquity 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 HealthEquity 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 HealthEquity i.e., HealthEquity and Certara go up and down completely randomly.
Pair Corralation between HealthEquity and Certara
Considering the 90-day investment horizon HealthEquity is expected to generate 0.72 times more return on investment than Certara. However, HealthEquity is 1.38 times less risky than Certara. It trades about 0.19 of its potential returns per unit of risk. Certara is currently generating about 0.1 per unit of risk. If you would invest 8,027 in HealthEquity on October 31, 2024 and sell it today you would earn a total of 2,853 from holding HealthEquity or generate 35.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
HealthEquity vs. Certara
Performance |
| Timeline |
| HealthEquity |
| Certara |
HealthEquity and Certara Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HealthEquity and Certara
The main advantage of trading using opposite HealthEquity and Certara positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HealthEquity 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.| HealthEquity vs. Ollies Bargain Outlet | HealthEquity vs. Appfolio | HealthEquity vs. Grand Canyon Education | HealthEquity vs. Globus Medical |
| 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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