Correlation Between Cadre Holdings and Performant Healthcare,
Can any of the company-specific risk be diversified away by investing in both Cadre Holdings and Performant Healthcare, 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 Cadre Holdings and Performant Healthcare, into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cadre Holdings and Performant Healthcare,, you can compare the effects of market volatilities on Cadre Holdings and Performant Healthcare, 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 Cadre Holdings with a short position of Performant Healthcare,. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cadre Holdings and Performant Healthcare,.
Diversification Opportunities for Cadre Holdings and Performant Healthcare,
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Cadre and Performant is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Cadre Holdings and Performant Healthcare, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Performant Healthcare, and Cadre Holdings 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 Cadre Holdings are associated (or correlated) with Performant Healthcare,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Performant Healthcare, has no effect on the direction of Cadre Holdings i.e., Cadre Holdings and Performant Healthcare, go up and down completely randomly.
Pair Corralation between Cadre Holdings and Performant Healthcare,
Given the investment horizon of 90 days Cadre Holdings is expected to under-perform the Performant Healthcare,. But the stock apears to be less risky and, when comparing its historical volatility, Cadre Holdings is 4.84 times less risky than Performant Healthcare,. The stock trades about -0.03 of its potential returns per unit of risk. The Performant Healthcare, is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 324.00 in Performant Healthcare, on June 3, 2025 and sell it today you would earn a total of 439.00 from holding Performant Healthcare, or generate 135.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cadre Holdings vs. Performant Healthcare,
Performance |
| Timeline |
| Cadre Holdings |
| Performant Healthcare, |
Cadre Holdings and Performant Healthcare, Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cadre Holdings and Performant Healthcare,
The main advantage of trading using opposite Cadre Holdings and Performant Healthcare, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cadre Holdings position performs unexpectedly, Performant Healthcare, 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 Performant Healthcare, will offset losses from the drop in Performant Healthcare,'s long position.The idea behind Cadre Holdings and Performant Healthcare, pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Performant Healthcare, vs. Precision Optics, | Performant Healthcare, vs. ARIA Wireless Systems | Performant Healthcare, vs. Boston Properties | Performant Healthcare, vs. Jacobs Solutions |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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