Correlation Between Health Assurance and USHG Acquisition

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

Diversification Opportunities for Health Assurance and USHG Acquisition

0.8
  Correlation Coefficient

Very poor diversification

The 3 months correlation between Health and USHG Acquisition is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Health Assurance Acquisition and USHG Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on USHG Acquisition Corp and Health Assurance 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 Health Assurance Acquisition are associated (or correlated) with USHG Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of USHG Acquisition Corp has no effect on the direction of Health Assurance i.e., Health Assurance and USHG Acquisition go up and down completely randomly.

Pair Corralation between Health Assurance and USHG Acquisition

Given the investment horizon of 90 days Health Assurance Acquisition is expected to generate 0.93 times more return on investment than USHG Acquisition. However, Health Assurance Acquisition is 1.08 times less risky than USHG Acquisition. It trades about 0.11 of its potential returns per unit of risk. USHG Acquisition Corp is currently generating about 0.05 per unit of risk. If you would invest  993.00  in Health Assurance Acquisition on June 29, 2022 and sell it today you would earn a total of  4.00  from holding Health Assurance Acquisition or generate 0.4% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthStrong
Accuracy100.0%
ValuesDaily Returns

Health Assurance Acquisition  vs.  USHG Acquisition Corp

 Performance (%) 
       Timeline  
Health Assurance Acq 
Health Performance
10 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Health Assurance Acquisition are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Health Assurance is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Health Price Channel

USHG Acquisition Corp 
USHG Acquisition Performance
5 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in USHG Acquisition Corp are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable technical and fundamental indicators, USHG Acquisition is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

USHG Acquisition Price Channel

Health Assurance and USHG Acquisition Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Health Assurance and USHG Acquisition

The main advantage of trading using opposite Health Assurance and USHG Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Health Assurance position performs unexpectedly, USHG Acquisition 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 USHG Acquisition will offset losses from the drop in USHG Acquisition's long position.
Health Assurance vs. Clearwater Paper Corp
The idea behind Health Assurance Acquisition and USHG Acquisition Corp 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.
USHG Acquisition vs. Clearwater Paper Corp
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 Fund Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.

Other Complementary Tools

Fundamental Analysis
View fundamental data based on most recent published financial statements
Go
Earnings Calls
Check upcoming earnings announcements updated hourly across public exchanges
Go
Watchlist Optimization
Optimize watchlists to build efficient portfolio or rebalance existing positions based on mean-variance optimization algorithm
Go
Theme Ratings
Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance
Go
Fundamentals Comparison
Compare fundamentals across multiple equities to find investing opportunities
Go
Global Correlations
Find global opportunities by holding instruments from different markets
Go
Portfolio Volatility
Check portfolio volatility and analyze historical return density to properly model market risk
Go
Financial Widgets
Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets
Go