Correlation Between Definitive Healthcare and Bar Harbor

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Definitive Healthcare and Bar Harbor 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 Definitive Healthcare and Bar Harbor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Definitive Healthcare Corp and Bar Harbor Bankshares, you can compare the effects of market volatilities on Definitive Healthcare and Bar Harbor 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 Definitive Healthcare with a short position of Bar Harbor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Definitive Healthcare and Bar Harbor.

Diversification Opportunities for Definitive Healthcare and Bar Harbor

0.58
  Correlation Coefficient

Very weak diversification

The 3 months correlation between Definitive and Bar Harbor is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Definitive Healthcare Corp and Bar Harbor Bankshares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bar Harbor Bankshares and Definitive Healthcare 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 Definitive Healthcare Corp are associated (or correlated) with Bar Harbor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bar Harbor Bankshares has no effect on the direction of Definitive Healthcare i.e., Definitive Healthcare and Bar Harbor go up and down completely randomly.

Pair Corralation between Definitive Healthcare and Bar Harbor

Allowing for the 90-day total investment horizon Definitive Healthcare is expected to generate 2.54 times less return on investment than Bar Harbor. In addition to that, Definitive Healthcare is 2.22 times more volatile than Bar Harbor Bankshares. It trades about 0.05 of its total potential returns per unit of risk. Bar Harbor Bankshares is currently generating about 0.27 per unit of volatility. If you would invest  2,440  in Bar Harbor Bankshares on May 19, 2022 and sell it today you would earn a total of  570.00  from holding Bar Harbor Bankshares or generate 23.36% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Definitive Healthcare Corp  vs.  Bar Harbor Bankshares

 Performance (%) 
       Timeline  
Definitive Healthcare 
Definitive Performance
10 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Definitive Healthcare Corp are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite nearly sluggish technical indicators, Definitive Healthcare reported solid returns over the last few months and may actually be approaching a breakup point.

Definitive Price Channel

Bar Harbor Bankshares 
Bar Harbor Performance
13 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Bar Harbor Bankshares are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite somewhat sluggish technical indicators, Bar Harbor sustained solid returns over the last few months and may actually be approaching a breakup point.

Bar Harbor Price Channel

Definitive Healthcare and Bar Harbor Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Definitive Healthcare and Bar Harbor

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

Definitive Healthcare Corp

Pair trading matchups for Definitive Healthcare

The idea behind Definitive Healthcare Corp and Bar Harbor Bankshares 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.

Bar Harbor Bankshares

Pair trading matchups for Bar Harbor

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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.

Other Complementary Tools

Money Managers
Screen money managers from public funds and ETFs managed around the world
Go
Money Managers
Screen money managers from public funds and ETFs managed around the world
Go
Headlines Timeline
Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity
Go
Portfolio Anywhere
Track or share privately all of your investments from the convenience of any device
Go
Price Ceiling Movement
Calculate and plot Price Ceiling Movement for different equity instruments
Go
Earnings Calls
Check upcoming earnings announcements updated hourly across public exchanges
Go