Correlation Between Accolade and Allscripts Hlthcare

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

Diversification Opportunities for Accolade and Allscripts Hlthcare

-0.4
  Correlation Coefficient

Very good diversification

The 3 months correlation between Accolade and Allscripts is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Accolade and Allscripts Hlthcare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allscripts Hlthcare and Accolade 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 Accolade are associated (or correlated) with Allscripts Hlthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allscripts Hlthcare has no effect on the direction of Accolade i.e., Accolade and Allscripts Hlthcare go up and down completely randomly.

Pair Corralation between Accolade and Allscripts Hlthcare

Given the investment horizon of 90 days Accolade is expected to under-perform the Allscripts Hlthcare. In addition to that, Accolade is 2.24 times more volatile than Allscripts Hlthcare. It trades about -0.01 of its total potential returns per unit of risk. Allscripts Hlthcare is currently generating about 0.06 per unit of volatility. If you would invest  917.00  in Allscripts Hlthcare on May 14, 2022 and sell it today you would earn a total of  803.00  from holding Allscripts Hlthcare or generate 87.57% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Accolade  vs.  Allscripts Hlthcare

 Performance (%) 
       Timeline  
Accolade 
Accolade Performance
13 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Accolade are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady fundamental indicators, Accolade exhibited solid returns over the last few months and may actually be approaching a breakup point.

Accolade Price Channel

Allscripts Hlthcare 
Allscripts Performance
0 of 100
Over the last 90 days Allscripts Hlthcare has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Allscripts Hlthcare is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Allscripts Price Channel

Accolade and Allscripts Hlthcare Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Accolade and Allscripts Hlthcare

The main advantage of trading using opposite Accolade and Allscripts Hlthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Accolade position performs unexpectedly, Allscripts Hlthcare 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 Allscripts Hlthcare will offset losses from the drop in Allscripts Hlthcare's long position.

Accolade

Pair trading matchups for Accolade

The idea behind Accolade and Allscripts Hlthcare 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.

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