Correlation Between HealthEquity and US Physicalrapy

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Can any of the company-specific risk be diversified away by investing in both HealthEquity and US Physicalrapy 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 US Physicalrapy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HealthEquity and US Physicalrapy, you can compare the effects of market volatilities on HealthEquity and US Physicalrapy 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 US Physicalrapy. Check out your portfolio center. Please also check ongoing floating volatility patterns of HealthEquity and US Physicalrapy.

Diversification Opportunities for HealthEquity and US Physicalrapy

-0.68
  Correlation Coefficient

Excellent diversification

The 3 months correlation between HealthEquity and USPH is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding HealthEquity and US Physicalrapy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on US Physicalrapy 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 US Physicalrapy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of US Physicalrapy has no effect on the direction of HealthEquity i.e., HealthEquity and US Physicalrapy go up and down completely randomly.

Pair Corralation between HealthEquity and US Physicalrapy

Considering the 90-day investment horizon HealthEquity is expected to generate 0.55 times more return on investment than US Physicalrapy. However, HealthEquity is 1.83 times less risky than US Physicalrapy. It trades about 0.18 of its potential returns per unit of risk. US Physicalrapy is currently generating about 0.09 per unit of risk. If you would invest  9,326  in HealthEquity on October 10, 2025 and sell it today you would earn a total of  451.00  from holding HealthEquity or generate 4.84% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

HealthEquity  vs.  US Physicalrapy

 Performance 
       Timeline  
HealthEquity 

Risk-Adjusted Performance

Mild

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in HealthEquity are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unsteady basic indicators, HealthEquity may actually be approaching a critical reversion point that can send shares even higher in February 2026.
US Physicalrapy 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days US Physicalrapy has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Stock's basic indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the firm traders.

HealthEquity and US Physicalrapy Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with HealthEquity and US Physicalrapy

The main advantage of trading using opposite HealthEquity and US Physicalrapy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HealthEquity position performs unexpectedly, US Physicalrapy 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 US Physicalrapy will offset losses from the drop in US Physicalrapy's long position.
The idea behind HealthEquity and US Physicalrapy 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.
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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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.

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