Correlation Between HealthEquity and Evolent Health
Can any of the company-specific risk be diversified away by investing in both HealthEquity 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 HealthEquity and Evolent Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HealthEquity and Evolent Health, you can compare the effects of market volatilities on HealthEquity 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 HealthEquity with a short position of Evolent Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of HealthEquity and Evolent Health.
Diversification Opportunities for HealthEquity and Evolent Health
-0.94 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between HealthEquity and Evolent is -0.94. Overlapping area represents the amount of risk that can be diversified away by holding HealthEquity and Evolent Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Evolent Health 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 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 HealthEquity i.e., HealthEquity and Evolent Health go up and down completely randomly.
Pair Corralation between HealthEquity and Evolent Health
Considering the 90-day investment horizon HealthEquity is expected to generate 0.25 times more return on investment than Evolent Health. However, HealthEquity is 4.01 times less risky than Evolent Health. It trades about 0.3 of its potential returns per unit of risk. Evolent Health is currently generating about -0.21 per unit of risk. If you would invest 8,782 in HealthEquity on August 27, 2024 and sell it today you would earn a total of 1,594 from holding HealthEquity or generate 18.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
HealthEquity vs. Evolent Health
Performance |
| Timeline |
| HealthEquity |
| Evolent Health |
HealthEquity and Evolent Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HealthEquity and Evolent Health
The main advantage of trading using opposite HealthEquity and Evolent Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HealthEquity 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.| HealthEquity vs. Ollies Bargain Outlet | HealthEquity vs. Appfolio | HealthEquity vs. Grand Canyon Education | HealthEquity vs. Globus Medical |
| Evolent Health vs. HealthStream | Evolent Health vs. National Research Corp | Evolent Health vs. Forian Inc | Evolent Health vs. HealthEquity |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |