Correlation Between Definitive Healthcare and Health Catalyst
Can any of the company-specific risk be diversified away by investing in both Definitive Healthcare and Health Catalyst 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 Definitive Healthcare and Health Catalyst into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Definitive Healthcare Corp and Health Catalyst, you can compare the effects of market volatilities on Definitive Healthcare and Health Catalyst 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 Definitive Healthcare with a short position of Health Catalyst. Check out your portfolio center. Please also check ongoing floating volatility patterns of Definitive Healthcare and Health Catalyst.
Diversification Opportunities for Definitive Healthcare and Health Catalyst
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Definitive and Health is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Definitive Healthcare Corp and Health Catalyst in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Health Catalyst and Definitive 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 Definitive Healthcare Corp are associated (or correlated) with Health Catalyst. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Health Catalyst has no effect on the direction of Definitive Healthcare i.e., Definitive Healthcare and Health Catalyst go up and down completely randomly.
Pair Corralation between Definitive Healthcare and Health Catalyst
Allowing for the 90-day total investment horizon Definitive Healthcare Corp is expected to generate 0.66 times more return on investment than Health Catalyst. However, Definitive Healthcare Corp is 1.51 times less risky than Health Catalyst. It trades about 0.05 of its potential returns per unit of risk. Health Catalyst is currently generating about -0.03 per unit of risk. If you would invest 355.00 in Definitive Healthcare Corp on June 4, 2025 and sell it today you would earn a total of 26.00 from holding Definitive Healthcare Corp or generate 7.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Definitive Healthcare Corp vs. Health Catalyst
Performance |
| Timeline |
| Definitive Healthcare |
| Health Catalyst |
Definitive Healthcare and Health Catalyst Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Definitive Healthcare and Health Catalyst
The main advantage of trading using opposite Definitive Healthcare and Health Catalyst positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Definitive Healthcare position performs unexpectedly, Health Catalyst 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 Health Catalyst will offset losses from the drop in Health Catalyst's long position.| Definitive Healthcare vs. National Research Corp | Definitive Healthcare vs. Certara | Definitive Healthcare vs. Health Catalyst | Definitive Healthcare vs. HealthStream |
| Health Catalyst vs. Definitive Healthcare Corp | Health Catalyst vs. HealthStream | Health Catalyst vs. TruBridge | Health Catalyst vs. Certara |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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