Correlation Between HealthEquity and Nutex Health
Can any of the company-specific risk be diversified away by investing in both HealthEquity and Nutex 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 Nutex Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HealthEquity and Nutex Health, you can compare the effects of market volatilities on HealthEquity and Nutex 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 Nutex Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of HealthEquity and Nutex Health.
Diversification Opportunities for HealthEquity and Nutex Health
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between HealthEquity and Nutex is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding HealthEquity and Nutex Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nutex 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 Nutex Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nutex Health has no effect on the direction of HealthEquity i.e., HealthEquity and Nutex Health go up and down completely randomly.
Pair Corralation between HealthEquity and Nutex Health
Considering the 90-day investment horizon HealthEquity is expected to generate 3.29 times less return on investment than Nutex Health. But when comparing it to its historical volatility, HealthEquity is 3.45 times less risky than Nutex Health. It trades about 0.32 of its potential returns per unit of risk. Nutex Health is currently generating about 0.3 of returns per unit of risk over similar time horizon. If you would invest 2,229 in Nutex Health on September 1, 2024 and sell it today you would earn a total of 1,491 from holding Nutex Health or generate 66.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
HealthEquity vs. Nutex Health
Performance |
| Timeline |
| HealthEquity |
| Nutex Health |
HealthEquity and Nutex Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HealthEquity and Nutex Health
The main advantage of trading using opposite HealthEquity and Nutex Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HealthEquity position performs unexpectedly, Nutex 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 Nutex Health will offset losses from the drop in Nutex Health's long position.| HealthEquity vs. Ollies Bargain Outlet | HealthEquity vs. Appfolio | HealthEquity vs. Grand Canyon Education | HealthEquity vs. Globus Medical |
| Nutex Health vs. Profound Medical Corp | Nutex Health vs. Si Bone | Nutex Health vs. Nevro Corp | Nutex Health vs. Paragon 28 |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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