Correlation Between Evolent Health and Minerva Surgical

Can any of the company-specific risk be diversified away by investing in both Evolent Health and Minerva Surgical 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 Evolent Health and Minerva Surgical into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Evolent Health and Minerva Surgical, you can compare the effects of market volatilities on Evolent Health and Minerva Surgical 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 Evolent Health with a short position of Minerva Surgical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Evolent Health and Minerva Surgical.

Diversification Opportunities for Evolent Health and Minerva Surgical

0.0

Correlation Coefficient

Evolent Health  Minerva Surgical

Pay attention - limited upside

The 3 months correlation between Evolent and Minerva is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Evolent Health and Minerva Surgical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Minerva Surgical and Evolent Health 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 Evolent Health are associated (or correlated) with Minerva Surgical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Minerva Surgical has no effect on the direction of Evolent Health i.e., Evolent Health and Minerva Surgical go up and down completely randomly.

Pair Corralation between Evolent Health and Minerva Surgical

If you would invest (100.00) in Minerva Surgical on December 29, 2024 and sell it today you would earn a total of  100.00  from holding Minerva Surgical or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Evolent Health  vs.  Minerva Surgical

Evolent Health

Risk-Adjusted Performance

Very Weak

Over the last 90 days Evolent Health has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest inconsistent performance, the Stock's basic indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the firm traders.

Minerva Surgical

Risk-Adjusted Performance

Very Weak

Over the last 90 days Minerva Surgical has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Minerva Surgical is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Evolent Health and Minerva Surgical

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

The idea behind Evolent Health and Minerva Surgical 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.

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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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.