Correlation Between HealthStream and Streamline Health
Can any of the company-specific risk be diversified away by investing in both HealthStream 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 HealthStream and Streamline Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HealthStream and Streamline Health Solutions, you can compare the effects of market volatilities on HealthStream 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 HealthStream with a short position of Streamline Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of HealthStream and Streamline Health.
Diversification Opportunities for HealthStream and Streamline Health
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between HealthStream and Streamline is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding HealthStream and Streamline Health Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Streamline Health 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 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 HealthStream i.e., HealthStream and Streamline Health go up and down completely randomly.
Pair Corralation between HealthStream and Streamline Health
Given the investment horizon of 90 days HealthStream is expected to generate 4.14 times less return on investment than Streamline Health. But when comparing it to its historical volatility, HealthStream is 5.96 times less risky than Streamline Health. It trades about 0.32 of its potential returns per unit of risk. Streamline Health Solutions is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 209.00 in Streamline Health Solutions on August 28, 2024 and sell it today you would earn a total of 103.00 from holding Streamline Health Solutions or generate 49.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
HealthStream vs. Streamline Health Solutions
Performance |
| Timeline |
| HealthStream |
| Streamline Health |
HealthStream and Streamline Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HealthStream and Streamline Health
The main advantage of trading using opposite HealthStream and Streamline Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HealthStream 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.| HealthStream vs. National Research Corp | HealthStream vs. Forian Inc | HealthStream vs. Streamline Health Solutions | HealthStream vs. Definitive Healthcare Corp |
| 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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