Correlation Between Performant Healthcare, and System1
Can any of the company-specific risk be diversified away by investing in both Performant Healthcare, and System1 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 Performant Healthcare, and System1 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Performant Healthcare, and System1, you can compare the effects of market volatilities on Performant Healthcare, and System1 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 Performant Healthcare, with a short position of System1. Check out your portfolio center. Please also check ongoing floating volatility patterns of Performant Healthcare, and System1.
Diversification Opportunities for Performant Healthcare, and System1
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Performant and System1 is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Performant Healthcare, and System1 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on System1 and Performant Healthcare, 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 Performant Healthcare, are associated (or correlated) with System1. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of System1 has no effect on the direction of Performant Healthcare, i.e., Performant Healthcare, and System1 go up and down completely randomly.
Pair Corralation between Performant Healthcare, and System1
Given the investment horizon of 90 days Performant Healthcare, is expected to generate 0.58 times more return on investment than System1. However, Performant Healthcare, is 1.72 times less risky than System1. It trades about 0.0 of its potential returns per unit of risk. System1 is currently generating about -0.03 per unit of risk. If you would invest 331.00 in Performant Healthcare, on November 1, 2024 and sell it today you would lose (96.00) from holding Performant Healthcare, or give up 29.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Performant Healthcare, vs. System1
Performance |
| Timeline |
| Performant Healthcare, |
| System1 |
Performant Healthcare, and System1 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Performant Healthcare, and System1
The main advantage of trading using opposite Performant Healthcare, and System1 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Performant Healthcare, position performs unexpectedly, System1 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 System1 will offset losses from the drop in System1's long position.| Performant Healthcare, vs. Air Transport Services | Performant Healthcare, vs. Nok Airlines Public | Performant Healthcare, vs. Viemed Healthcare | Performant Healthcare, vs. Merit Medical Systems |
| System1 vs. Network 1 Technologies | System1 vs. Maximus | System1 vs. First Advantage Corp | System1 vs. Civeo Corp |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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