Correlation Between Theglobe and Streamline Health
Can any of the company-specific risk be diversified away by investing in both Theglobe and Streamline 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 Theglobe and Streamline Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between theglobe and Streamline Health Solutions, you can compare the effects of market volatilities on Theglobe and Streamline 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 Theglobe with a short position of Streamline Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Theglobe and Streamline Health.
Diversification Opportunities for Theglobe and Streamline Health
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Theglobe and Streamline is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding theglobe and Streamline Health Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Streamline Health and Theglobe 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 theglobe are associated (or correlated) with Streamline Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Streamline Health has no effect on the direction of Theglobe i.e., Theglobe and Streamline Health go up and down completely randomly.
Pair Corralation between Theglobe and Streamline Health
If you would invest 215.00 in Streamline Health Solutions on August 30, 2024 and sell it today you would earn a total of 63.00 from holding Streamline Health Solutions or generate 29.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 4.35% |
| Values | Daily Returns |
theglobe vs. Streamline Health Solutions
Performance |
| Timeline |
| theglobe |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Streamline Health |
Theglobe and Streamline Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Theglobe and Streamline Health
The main advantage of trading using opposite Theglobe and Streamline Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Theglobe position performs unexpectedly, Streamline 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 Streamline Health will offset losses from the drop in Streamline Health's long position.| Theglobe vs. Blockchain Industries | Theglobe vs. Plandai Biotech | Theglobe vs. KAT Exploration | Theglobe vs. A1 Group |
| Streamline Health vs. HealthStream | Streamline Health vs. National Research Corp | Streamline Health vs. Forian Inc | Streamline Health 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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