Correlation Between National Research and Waystar Holding

Can any of the company-specific risk be diversified away by investing in both National Research and Waystar Holding 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 National Research and Waystar Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between National Research Corp and Waystar Holding Corp, you can compare the effects of market volatilities on National Research and Waystar Holding 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 National Research with a short position of Waystar Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of National Research and Waystar Holding.

Diversification Opportunities for National Research and Waystar Holding

-0.64

Correlation Coefficient

National Research  Waystar Holding

Excellent diversification

The 3 months correlation between National and Waystar is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding National Research Corp and Waystar Holding Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Waystar Holding Corp and National Research 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 National Research Corp are associated (or correlated) with Waystar Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Waystar Holding Corp has no effect on the direction of National Research i.e., National Research and Waystar Holding go up and down completely randomly.

Pair Corralation between National Research and Waystar Holding

Considering the 90-day investment horizon National Research is expected to generate 1.93 times less return on investment than Waystar Holding. In addition to that, National Research is 1.17 times more volatile than Waystar Holding Corp. It trades about 0.08 of its total potential returns per unit of risk. Waystar Holding Corp is currently generating about 0.18 per unit of volatility. If you would invest  3,549  in Waystar Holding Corp on October 20, 2024 and sell it today you would earn a total of  198.00  from holding Waystar Holding Corp or generate 5.58% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

National Research Corp  vs.  Waystar Holding Corp

National Research Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days National Research Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, National Research is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Waystar Holding Corp

Risk-Adjusted Performance

22 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Waystar Holding Corp are ranked lower than 22 (%) of all global equities and portfolios over the last 90 days. In spite of fairly conflicting basic indicators, Waystar Holding showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with National Research and Waystar Holding

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

The idea behind National Research Corp and Waystar Holding 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.

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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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.