Correlation Between Skechers USA and Performant Healthcare,

Can any of the company-specific risk be diversified away by investing in both Skechers USA and Performant Healthcare, 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 Skechers USA and Performant Healthcare, into the same portfolio, which is an essential part of the fundamental portfolio management process.

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

Diversification Opportunities for Skechers USA and Performant Healthcare,

-0.62

Correlation Coefficient

Skechers USA  Performant Healthcare,

Excellent diversification

The 3 months correlation between Skechers and Performant is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Skechers USA and Performant Healthcare, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Performant Healthcare, and Skechers USA 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 Skechers USA are associated (or correlated) with Performant Healthcare,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Performant Healthcare, has no effect on the direction of Skechers USA i.e., Skechers USA and Performant Healthcare, go up and down completely randomly.

Pair Corralation between Skechers USA and Performant Healthcare,

Considering the 90-day investment horizon Skechers USA is expected to generate 0.42 times more return on investment than Performant Healthcare,. However, Skechers USA is 2.36 times less risky than Performant Healthcare,. It trades about 0.28 of its potential returns per unit of risk. Performant Healthcare, is currently generating about -0.3 per unit of risk. If you would invest  6,773  in Skechers USA on October 25, 2024 and sell it today you would earn a total of  573.00  from holding Skechers USA or generate 8.46% return on investment over 90 days.

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

Skechers USA  vs.  Performant Healthcare,

Skechers USA

Risk-Adjusted Performance

16 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Skechers USA are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak forward-looking signals, Skechers USA showed solid returns over the last few months and may actually be approaching a breakup point.

Performant Healthcare,

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Performant Healthcare, has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's essential indicators remain comparatively stable which may send shares a bit higher in February 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Skechers USA and Performant Healthcare,

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

The idea behind Skechers USA and Performant Healthcare, 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.