Correlation Between Veradigm and Health Catalyst
Can any of the company-specific risk be diversified away by investing in both Veradigm and Health Catalyst 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 Veradigm and Health Catalyst into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Veradigm and Health Catalyst, you can compare the effects of market volatilities on Veradigm and Health Catalyst 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 Veradigm with a short position of Health Catalyst. Check out your portfolio center. Please also check ongoing floating volatility patterns of Veradigm and Health Catalyst.
Diversification Opportunities for Veradigm and Health Catalyst
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Veradigm and Health is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Veradigm and Health Catalyst in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Health Catalyst and Veradigm 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 Veradigm are associated (or correlated) with Health Catalyst. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Health Catalyst has no effect on the direction of Veradigm i.e., Veradigm and Health Catalyst go up and down completely randomly.
Pair Corralation between Veradigm and Health Catalyst
If you would invest 793.00 in Health Catalyst on August 28, 2024 and sell it today you would earn a total of 57.00 from holding Health Catalyst or generate 7.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Veradigm vs. Health Catalyst
Performance |
| Timeline |
| Veradigm |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Health Catalyst |
Veradigm and Health Catalyst Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Veradigm and Health Catalyst
The main advantage of trading using opposite Veradigm and Health Catalyst positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Veradigm position performs unexpectedly, Health Catalyst 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 Health Catalyst will offset losses from the drop in Health Catalyst's long position.| Veradigm vs. National Research Corp | Veradigm vs. Definitive Healthcare Corp | Veradigm vs. HealthStream | Veradigm vs. Certara |
| Health Catalyst vs. HealthStream | Health Catalyst vs. National Research Corp | Health Catalyst vs. Forian Inc | Health Catalyst 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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