Correlation Between Quidel and Clover Health

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

Diversification Opportunities for Quidel and Clover Health

0.47
  Correlation Coefficient

Very weak diversification

The 3 months correlation between Quidel and Clover is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Quidel and Clover Health Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clover Health Investments and Quidel 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 Quidel are associated (or correlated) with Clover Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clover Health Investments has no effect on the direction of Quidel i.e., Quidel and Clover Health go up and down completely randomly.

Pair Corralation between Quidel and Clover Health

Given the investment horizon of 90 days Quidel is expected to generate 0.94 times more return on investment than Clover Health. However, Quidel is 1.06 times less risky than Clover Health. It trades about 0.01 of its potential returns per unit of risk. Clover Health Investments is currently generating about 0.0 per unit of risk. If you would invest  2,761  in Quidel on September 3, 2025 and sell it today you would lose (108.00) from holding Quidel or give up 3.91% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Quidel  vs.  Clover Health Investments

 Performance 
       Timeline  
Quidel 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Quidel has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent technical and fundamental indicators, Quidel is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.
Clover Health Investments 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Clover Health Investments has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Clover Health is not utilizing all of its potentials. The newest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Quidel and Clover Health Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Quidel and Clover Health

The main advantage of trading using opposite Quidel and Clover Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Quidel position performs unexpectedly, Clover Health 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 Clover Health will offset losses from the drop in Clover Health's long position.
The idea behind Quidel and Clover Health Investments 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.
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.

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