Correlation Between HealthEquity and HealthStream
Can any of the company-specific risk be diversified away by investing in both HealthEquity 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 HealthEquity and HealthStream into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HealthEquity and HealthStream, you can compare the effects of market volatilities on HealthEquity 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 HealthEquity with a short position of HealthStream. Check out your portfolio center. Please also check ongoing floating volatility patterns of HealthEquity and HealthStream.
Diversification Opportunities for HealthEquity and HealthStream
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between HealthEquity and HealthStream is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding HealthEquity and HealthStream in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HealthStream 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 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 HealthEquity i.e., HealthEquity and HealthStream go up and down completely randomly.
Pair Corralation between HealthEquity and HealthStream
Considering the 90-day investment horizon HealthEquity is expected to under-perform the HealthStream. In addition to that, HealthEquity is 1.64 times more volatile than HealthStream. It trades about -0.13 of its total potential returns per unit of risk. HealthStream is currently generating about 0.16 per unit of volatility. If you would invest 2,676 in HealthStream on May 29, 2025 and sell it today you would earn a total of 124.00 from holding HealthStream or generate 4.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
HealthEquity vs. HealthStream
Performance |
| Timeline |
| HealthEquity |
| HealthStream |
HealthEquity and HealthStream Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HealthEquity and HealthStream
The main advantage of trading using opposite HealthEquity and HealthStream positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HealthEquity 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.| HealthEquity vs. Evolent Health | HealthEquity vs. Premier | HealthEquity vs. Omnicell | HealthEquity vs. Progyny |
| HealthStream vs. TruBridge | HealthStream vs. National Research Corp | HealthStream vs. Forian Inc | HealthStream vs. HealthEquity |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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