Correlation Between Streamline Health and Strategy Shares
Can any of the company-specific risk be diversified away by investing in both Streamline Health and Strategy Shares 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 Streamline Health and Strategy Shares into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Streamline Health Solutions and Strategy Shares, you can compare the effects of market volatilities on Streamline Health and Strategy Shares 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 Streamline Health with a short position of Strategy Shares. Check out your portfolio center. Please also check ongoing floating volatility patterns of Streamline Health and Strategy Shares.
Diversification Opportunities for Streamline Health and Strategy Shares
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Streamline and Strategy is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Streamline Health Solutions and Strategy Shares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Strategy Shares and Streamline 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 Streamline Health Solutions are associated (or correlated) with Strategy Shares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Strategy Shares has no effect on the direction of Streamline Health i.e., Streamline Health and Strategy Shares go up and down completely randomly.
Pair Corralation between Streamline Health and Strategy Shares
If you would invest 230.00 in Streamline Health Solutions on September 2, 2024 and sell it today you would earn a total of 32.00 from holding Streamline Health Solutions or generate 13.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Streamline Health Solutions vs. Strategy Shares
Performance |
| Timeline |
| Streamline Health |
| Strategy Shares |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Streamline Health and Strategy Shares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Streamline Health and Strategy Shares
The main advantage of trading using opposite Streamline Health and Strategy Shares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Streamline Health position performs unexpectedly, Strategy Shares 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 Strategy Shares will offset losses from the drop in Strategy Shares' long position.| Streamline Health vs. HealthStream | Streamline Health vs. National Research Corp | Streamline Health vs. Forian Inc | Streamline Health vs. HealthEquity |
| Strategy Shares vs. Vanguard Growth Index | Strategy Shares vs. iShares Russell 1000 | Strategy Shares vs. iShares SP 500 | Strategy Shares vs. iShares Core SP |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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