Correlation Between HealthStream and So Young
Can any of the company-specific risk be diversified away by investing in both HealthStream and So Young 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 So Young into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HealthStream and So Young International, you can compare the effects of market volatilities on HealthStream and So Young 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 So Young. Check out your portfolio center. Please also check ongoing floating volatility patterns of HealthStream and So Young.
Diversification Opportunities for HealthStream and So Young
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between HealthStream and So Young is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding HealthStream and So Young International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on So Young International 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 So Young. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of So Young International has no effect on the direction of HealthStream i.e., HealthStream and So Young go up and down completely randomly.
Pair Corralation between HealthStream and So Young
Given the investment horizon of 90 days HealthStream is expected to generate 0.27 times more return on investment than So Young. However, HealthStream is 3.74 times less risky than So Young. It trades about 0.3 of its potential returns per unit of risk. So Young International is currently generating about -0.09 per unit of risk. If you would invest 2,892 in HealthStream on August 27, 2024 and sell it today you would earn a total of 327.00 from holding HealthStream or generate 11.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
HealthStream vs. So Young International
Performance |
| Timeline |
| HealthStream |
| So Young International |
HealthStream and So Young Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HealthStream and So Young
The main advantage of trading using opposite HealthStream and So Young positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HealthStream position performs unexpectedly, So Young 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 So Young will offset losses from the drop in So Young's long position.| HealthStream vs. National Research Corp | HealthStream vs. Forian Inc | HealthStream vs. Streamline Health Solutions | HealthStream vs. Definitive Healthcare Corp |
| So Young vs. National Research Corp | So Young vs. Definitive Healthcare Corp | So Young vs. HealthStream | So Young vs. Streamline Health Solutions |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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