Correlation Between HealthStream and Certara
Can any of the company-specific risk be diversified away by investing in both HealthStream 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 HealthStream and Certara into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HealthStream and Certara, you can compare the effects of market volatilities on HealthStream 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 HealthStream with a short position of Certara. Check out your portfolio center. Please also check ongoing floating volatility patterns of HealthStream and Certara.
Diversification Opportunities for HealthStream and Certara
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between HealthStream and Certara is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding HealthStream and Certara in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Certara and HealthStream 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 HealthStream 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 HealthStream i.e., HealthStream and Certara go up and down completely randomly.
Pair Corralation between HealthStream and Certara
Given the investment horizon of 90 days HealthStream is expected to generate 0.54 times more return on investment than Certara. However, HealthStream is 1.86 times less risky than Certara. It trades about 0.07 of its potential returns per unit of risk. Certara is currently generating about -0.05 per unit of risk. If you would invest 2,532 in HealthStream on August 24, 2024 and sell it today you would earn a total of 650.00 from holding HealthStream or generate 25.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
HealthStream vs. Certara
Performance |
| Timeline |
| HealthStream |
| Certara |
HealthStream and Certara Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HealthStream and Certara
The main advantage of trading using opposite HealthStream and Certara positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HealthStream 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.| HealthStream vs. National Research Corp | HealthStream vs. Forian Inc | HealthStream vs. Streamline Health Solutions | HealthStream vs. Definitive Healthcare Corp |
| 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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