Correlation Between So Young and Healthcare Integrated
Can any of the company-specific risk be diversified away by investing in both So Young and Healthcare Integrated 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 So Young and Healthcare Integrated into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between So Young International and Healthcare Integrated Technologies, you can compare the effects of market volatilities on So Young and Healthcare Integrated 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 So Young with a short position of Healthcare Integrated. Check out your portfolio center. Please also check ongoing floating volatility patterns of So Young and Healthcare Integrated.
Diversification Opportunities for So Young and Healthcare Integrated
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between So Young and Healthcare is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding So Young International and Healthcare Integrated Technolo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Healthcare Integrated and So Young 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 So Young International are associated (or correlated) with Healthcare Integrated. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Healthcare Integrated has no effect on the direction of So Young i.e., So Young and Healthcare Integrated go up and down completely randomly.
Pair Corralation between So Young and Healthcare Integrated
Allowing for the 90-day total investment horizon So Young International is expected to under-perform the Healthcare Integrated. But the stock apears to be less risky and, when comparing its historical volatility, So Young International is 2.28 times less risky than Healthcare Integrated. The stock trades about -0.02 of its potential returns per unit of risk. The Healthcare Integrated Technologies is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 13.00 in Healthcare Integrated Technologies on September 1, 2024 and sell it today you would lose (1.00) from holding Healthcare Integrated Technologies or give up 7.69% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
So Young International vs. Healthcare Integrated Technolo
Performance |
| Timeline |
| So Young International |
| Healthcare Integrated |
So Young and Healthcare Integrated Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with So Young and Healthcare Integrated
The main advantage of trading using opposite So Young and Healthcare Integrated positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if So Young position performs unexpectedly, Healthcare Integrated 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 Healthcare Integrated will offset losses from the drop in Healthcare Integrated's long position.| So Young vs. National Research Corp | So Young vs. Definitive Healthcare Corp | So Young vs. HealthStream | So Young vs. Streamline Health Solutions |
| Healthcare Integrated vs. GE HealthCare Technologies | Healthcare Integrated vs. Veeva Systems Class | Healthcare Integrated vs. Solventum Corp | Healthcare Integrated vs. Doximity |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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