Correlation Between Hims Hers and HealthStream
Can any of the company-specific risk be diversified away by investing in both Hims Hers and HealthStream 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 Hims Hers and HealthStream into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hims Hers Health and HealthStream, you can compare the effects of market volatilities on Hims Hers and HealthStream 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 Hims Hers with a short position of HealthStream. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hims Hers and HealthStream.
Diversification Opportunities for Hims Hers and HealthStream
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Hims and HealthStream is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding Hims Hers Health and HealthStream in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HealthStream and Hims Hers 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 Hims Hers Health are associated (or correlated) with HealthStream. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HealthStream has no effect on the direction of Hims Hers i.e., Hims Hers and HealthStream go up and down completely randomly.
Pair Corralation between Hims Hers and HealthStream
Given the investment horizon of 90 days Hims Hers Health is expected to generate 2.81 times more return on investment than HealthStream. However, Hims Hers is 2.81 times more volatile than HealthStream. It trades about 0.1 of its potential returns per unit of risk. HealthStream is currently generating about -0.08 per unit of risk. If you would invest 3,192 in Hims Hers Health on March 27, 2025 and sell it today you would earn a total of 1,103 from holding Hims Hers Health or generate 34.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hims Hers Health vs. HealthStream
Performance |
| Timeline |
| Hims Hers Health |
| HealthStream |
Hims Hers and HealthStream Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hims Hers and HealthStream
The main advantage of trading using opposite Hims Hers and HealthStream positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hims Hers position performs unexpectedly, HealthStream 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 HealthStream will offset losses from the drop in HealthStream's long position.| Hims Hers vs. ELF Beauty | Hims Hers vs. Newell Brands | Hims Hers vs. Virgin Group Acquisition | Hims Hers vs. Estee Lauder Companies |
| HealthStream vs. National Research Corp | HealthStream vs. Forian Inc | HealthStream vs. Streamline Health Solutions | HealthStream vs. Definitive Healthcare 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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