Correlation Between Oscar Health and Clover Health
Can any of the company-specific risk be diversified away by investing in both Oscar Health and Clover 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 Oscar Health and Clover Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oscar Health and Clover Health Investments, you can compare the effects of market volatilities on Oscar Health and Clover 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 Oscar Health with a short position of Clover Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oscar Health and Clover Health.
Diversification Opportunities for Oscar Health and Clover Health
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Oscar and Clover is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Oscar Health and Clover Health Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clover Health Investments and Oscar Health 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 Oscar Health are associated (or correlated) with Clover Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clover Health Investments has no effect on the direction of Oscar Health i.e., Oscar Health and Clover Health go up and down completely randomly.
Pair Corralation between Oscar Health and Clover Health
Given the investment horizon of 90 days Oscar Health is expected to generate 1.61 times more return on investment than Clover Health. However, Oscar Health is 1.61 times more volatile than Clover Health Investments. It trades about 0.1 of its potential returns per unit of risk. Clover Health Investments is currently generating about -0.13 per unit of risk. If you would invest 1,535 in Oscar Health on August 28, 2024 and sell it today you would earn a total of 150.00 from holding Oscar Health or generate 9.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oscar Health vs. Clover Health Investments
Performance |
| Timeline |
| Oscar Health |
| Clover Health Investments |
Oscar Health and Clover Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oscar Health and Clover Health
The main advantage of trading using opposite Oscar Health and Clover Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oscar Health position performs unexpectedly, Clover 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 Clover Health will offset losses from the drop in Clover Health's long position.| Oscar Health vs. Molina Healthcare | Oscar Health vs. Centene Corp | Oscar Health vs. Elevance Health | Oscar Health vs. Clover Health Investments |
| Clover Health vs. Skillz Platform | Clover Health vs. BlackBerry | Clover Health vs. Fubotv Inc | Clover Health vs. SNDL Inc |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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