Correlation Between HealthEquity and Stryker
Can any of the company-specific risk be diversified away by investing in both HealthEquity and Stryker 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 HealthEquity and Stryker into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HealthEquity and Stryker, you can compare the effects of market volatilities on HealthEquity and Stryker 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 HealthEquity with a short position of Stryker. Check out your portfolio center. Please also check ongoing floating volatility patterns of HealthEquity and Stryker.
Diversification Opportunities for HealthEquity and Stryker
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between HealthEquity and Stryker is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding HealthEquity and Stryker in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stryker and HealthEquity 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 HealthEquity are associated (or correlated) with Stryker. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stryker has no effect on the direction of HealthEquity i.e., HealthEquity and Stryker go up and down completely randomly.
Pair Corralation between HealthEquity and Stryker
Considering the 90-day investment horizon HealthEquity is expected to generate 1.09 times more return on investment than Stryker. However, HealthEquity is 1.09 times more volatile than Stryker. It trades about 0.01 of its potential returns per unit of risk. Stryker is currently generating about -0.26 per unit of risk. If you would invest 7,920 in HealthEquity on February 7, 2024 and sell it today you would earn a total of 7.00 from holding HealthEquity or generate 0.09% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
HealthEquity vs. Stryker
Performance |
Timeline |
HealthEquity |
Stryker |
HealthEquity and Stryker Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with HealthEquity and Stryker
The main advantage of trading using opposite HealthEquity and Stryker positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HealthEquity position performs unexpectedly, Stryker 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 Stryker will offset losses from the drop in Stryker's long position.HealthEquity vs. Ollies Bargain Outlet | HealthEquity vs. Appfolio | HealthEquity vs. Grand Canyon Education | HealthEquity vs. Globus Medical |
Stryker vs. Us Global Nanospace | Stryker vs. MidCap Financial Investment | Stryker vs. Nuveen Core Plus | Stryker vs. Sono Tek 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
Transaction History View history of all your transactions and understand their impact on performance | |
Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
Bonds Directory Find actively traded corporate debentures issued by US companies | |
Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |