Correlation Between Palantir Technologies and Vitalhub Corp

Can any of the company-specific risk be diversified away by investing in both Palantir Technologies and Vitalhub Corp 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 Palantir Technologies and Vitalhub Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.

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

Diversification Opportunities for Palantir Technologies and Vitalhub Corp

0.93

Correlation Coefficient

Palantir Technologies  Vitalhub Corp

Almost no diversification

The 3 months correlation between Palantir and Vitalhub is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Palantir Technologies Class and Vitalhub Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vitalhub Corp and Palantir Technologies 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 Palantir Technologies Class are associated (or correlated) with Vitalhub Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vitalhub Corp has no effect on the direction of Palantir Technologies i.e., Palantir Technologies and Vitalhub Corp go up and down completely randomly.

Pair Corralation between Palantir Technologies and Vitalhub Corp

Given the investment horizon of 90 days Palantir Technologies Class is expected to generate 1.75 times more return on investment than Vitalhub Corp. However, Palantir Technologies is 1.75 times more volatile than Vitalhub Corp. It trades about 0.24 of its potential returns per unit of risk. Vitalhub Corp is currently generating about 0.04 per unit of risk. If you would invest  6,070  in Palantir Technologies Class on September 14, 2024 and sell it today you would earn a total of  1,303  from holding Palantir Technologies Class or generate 21.47% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	95.45%
Values	Daily Returns

Palantir Technologies Class  vs.  Vitalhub Corp

Palantir Technologies

Risk-Adjusted Performance

22 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Palantir Technologies Class are ranked lower than 22 (%) of all global equities and portfolios over the last 90 days. Even with relatively abnormal basic indicators, Palantir Technologies reported solid returns over the last few months and may actually be approaching a breakup point.

Vitalhub Corp

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Vitalhub Corp are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite nearly abnormal fundamental drivers, Vitalhub Corp reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Palantir Technologies and Vitalhub Corp

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

The idea behind Palantir Technologies Class and Vitalhub 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.

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 the Money Managers module to screen money managers from public funds and ETFs managed around the world.