Correlation Between Outset Medical and Alignment Healthcare
Can any of the company-specific risk be diversified away by investing in both Outset Medical and Alignment 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 Outset Medical and Alignment Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Outset Medical and Alignment Healthcare LLC, you can compare the effects of market volatilities on Outset Medical and Alignment 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 Outset Medical with a short position of Alignment Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Outset Medical and Alignment Healthcare.
Diversification Opportunities for Outset Medical and Alignment Healthcare
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Outset and Alignment is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Outset Medical and Alignment Healthcare LLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alignment Healthcare LLC and Outset Medical 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 Outset Medical are associated (or correlated) with Alignment Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alignment Healthcare LLC has no effect on the direction of Outset Medical i.e., Outset Medical and Alignment Healthcare go up and down completely randomly.
Pair Corralation between Outset Medical and Alignment Healthcare
Allowing for the 90-day total investment horizon Outset Medical is expected to under-perform the Alignment Healthcare. In addition to that, Outset Medical is 1.62 times more volatile than Alignment Healthcare LLC. It trades about -0.08 of its total potential returns per unit of risk. Alignment Healthcare LLC is currently generating about 0.06 per unit of volatility. If you would invest 1,476 in Alignment Healthcare LLC on May 27, 2025 and sell it today you would earn a total of 124.50 from holding Alignment Healthcare LLC or generate 8.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Outset Medical vs. Alignment Healthcare LLC
Performance |
| Timeline |
| Outset Medical |
| Alignment Healthcare LLC |
Outset Medical and Alignment Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Outset Medical and Alignment Healthcare
The main advantage of trading using opposite Outset Medical and Alignment Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Outset Medical position performs unexpectedly, Alignment 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 Alignment Healthcare will offset losses from the drop in Alignment Healthcare's long position.| Outset Medical vs. TransMedics Group | Outset Medical vs. Pulmonx Corp | Outset Medical vs. Orthofix Medical | Outset Medical vs. Live Oak Bancshares, |
| Alignment Healthcare vs. Oscar Health | Alignment Healthcare vs. Molina Healthcare | Alignment Healthcare vs. Centene Corp | Alignment Healthcare vs. NeueHealth |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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