Correlation Between Acadia Healthcare and USWE SPORTS
Can any of the company-specific risk be diversified away by investing in both Acadia Healthcare and USWE SPORTS 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 Acadia Healthcare and USWE SPORTS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Acadia Healthcare and USWE SPORTS AB, you can compare the effects of market volatilities on Acadia Healthcare and USWE SPORTS 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 Acadia Healthcare with a short position of USWE SPORTS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Acadia Healthcare and USWE SPORTS.
Diversification Opportunities for Acadia Healthcare and USWE SPORTS
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Acadia and USWE is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Acadia Healthcare and USWE SPORTS AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on USWE SPORTS AB and Acadia 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 Acadia Healthcare are associated (or correlated) with USWE SPORTS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of USWE SPORTS AB has no effect on the direction of Acadia Healthcare i.e., Acadia Healthcare and USWE SPORTS go up and down completely randomly.
Pair Corralation between Acadia Healthcare and USWE SPORTS
Assuming the 90 days horizon Acadia Healthcare is expected to under-perform the USWE SPORTS. In addition to that, Acadia Healthcare is 1.87 times more volatile than USWE SPORTS AB. It trades about -0.08 of its total potential returns per unit of risk. USWE SPORTS AB is currently generating about -0.09 per unit of volatility. If you would invest 143.00 in USWE SPORTS AB on September 3, 2025 and sell it today you would lose (22.00) from holding USWE SPORTS AB or give up 15.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Acadia Healthcare vs. USWE SPORTS AB
Performance |
| Timeline |
| Acadia Healthcare |
| USWE SPORTS AB |
Acadia Healthcare and USWE SPORTS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Acadia Healthcare and USWE SPORTS
The main advantage of trading using opposite Acadia Healthcare and USWE SPORTS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Acadia Healthcare position performs unexpectedly, USWE SPORTS 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 USWE SPORTS will offset losses from the drop in USWE SPORTS's long position.| Acadia Healthcare vs. HCA Healthcare | Acadia Healthcare vs. FRESENIUS SECO ADR | Acadia Healthcare vs. Fresenius SE Co | Acadia Healthcare vs. Fresenius Medical Care |
| USWE SPORTS vs. Oriental Land Co | USWE SPORTS vs. Li Ning Company | USWE SPORTS vs. Trip Group Limited | USWE SPORTS vs. Royal Caribbean Group |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |