Correlation Between HealthEquity and Streamline Health
Can any of the company-specific risk be diversified away by investing in both HealthEquity and Streamline 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 Streamline Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HealthEquity and Streamline Health Solutions, you can compare the effects of market volatilities on HealthEquity and Streamline 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 Streamline Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of HealthEquity and Streamline Health.
Diversification Opportunities for HealthEquity and Streamline Health
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between HealthEquity and Streamline is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding HealthEquity and Streamline Health Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Streamline 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 Streamline Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Streamline Health has no effect on the direction of HealthEquity i.e., HealthEquity and Streamline Health go up and down completely randomly.
Pair Corralation between HealthEquity and Streamline Health
Considering the 90-day investment horizon HealthEquity is expected to generate 0.39 times more return on investment than Streamline Health. However, HealthEquity is 2.57 times less risky than Streamline Health. It trades about 0.47 of its potential returns per unit of risk. Streamline Health Solutions is currently generating about 0.05 per unit of risk. If you would invest 9,710 in HealthEquity on November 7, 2024 and sell it today you would earn a total of 1,487 from holding HealthEquity or generate 15.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
HealthEquity vs. Streamline Health Solutions
Performance |
| Timeline |
| HealthEquity |
| Streamline Health |
HealthEquity and Streamline Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HealthEquity and Streamline Health
The main advantage of trading using opposite HealthEquity and Streamline Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HealthEquity position performs unexpectedly, Streamline 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 Streamline Health will offset losses from the drop in Streamline Health's long position.| HealthEquity vs. Ollies Bargain Outlet | HealthEquity vs. Appfolio | HealthEquity vs. Grand Canyon Education | HealthEquity vs. Globus Medical |
| Streamline Health vs. HealthStream | Streamline Health vs. National Research Corp | Streamline Health vs. Forian Inc | Streamline 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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